subject
Mathematics, 15.07.2020 02:01 milkshakegrande101

One year ago, your company purchased a machine used in manufacturing for $115,000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $160,000 today. The CCA rate applicable to both machines is 40%; neither machine will have any long-term salvage value.
You expect that the new machine will produce earnings before interest, taxes, depreciation, and amortization (EBITDA) of $45,000 per year for the next 10 years. The
current machine is expected to produce EBITDA of $22,000 per year. All other expenses of the two machines are identical. The market value today of the current
machine is $50,000. Your company's tax rate is 45%, and the opportunity cost of capital for this type of equipment is 12%. Should your company replace its year-old
machine?
What is the NPV of replacement?

ansver
Answers: 3

Another question on Mathematics

question
Mathematics, 21.06.2019 16:20
Abby is preparing fruit punch for her party. she starts with a bowl filled with liquid that has 1/2 fruit juice and 1/2 sprite, but she decides it's too fruity. so she pours out 1/4 of the liquid, and then fills the bowl up again with sprite. what fraction of the punch is now sprite?
Answers: 1
question
Mathematics, 21.06.2019 20:30
Clarence wants to buy a new car. he finds an ad for a car that costs 27,200 dollars. suppose his local sales tax is 7%. -how much would he have to pay? -what is the cost of the car including tax? -if clarence has 29,864 saved, can he pay cash to buy the car?
Answers: 1
question
Mathematics, 21.06.2019 21:30
The diagram represents the polynomial 4x2 + 23x – 72. what is the factored form of 4x2 + 23x – 72? (4x + 8)(x – 9) (4x – 8)(x + 9) (4x + 9)(x – 8) (4x – 9)(x + 8)
Answers: 2
question
Mathematics, 21.06.2019 22:20
Which is the focus of a parabola with equation y2=4x
Answers: 1
You know the right answer?
One year ago, your company purchased a machine used in manufacturing for $115,000. You have learned...
Questions
question
English, 17.09.2019 07:00
question
English, 17.09.2019 07:00