Business, 19.02.2021 17:10, DesperatforanA

A company owns a 5-year old turret lathe that has a book value of $25,000. The present market value for the lathe is $16,000. The expected decline in market value is $2,000/year to a minimum market value of $4000. maintenance plus operating costs for the lathe equal $4,200/year. A new turret lathe can be purchased for $45,000 and will have an expected life of 8 years. The market value for the turret lathe is expected to equal $45,000(0.70)k at the end of year k. Annual maintenance and operating cost is expected to equal $1,600. Based on a 12% before-tax MARR, should the old lathe be replaced now? Use an equivalent uniform annual cost comparison, a planning horizon of 7 years, and the cash flow approach.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 17:40, jjackson0010

Steffi is reviewing various licenses and their uses. match the licenses to their respective uses.

Answers: 3

continue

Business, 21.06.2019 22:10, angellynn581

3. now assume that carnival booked lady antebellum in december 2016 to perform on the june 2017 western caribbean cruise. further assume that carnival pays lady antebellum its entire performance fee of $52,000 on december 28, 2016, for the june 2017 cruise. what journal entry will carnival make on december 28, 2016, for its payment to lady antebellum?

Answers: 1

continue

Business, 22.06.2019 06:00, kinglightskin2k

If you miss two payments on a credit card what is generally the penalty

Answers: 1

continue

Business, 22.06.2019 07:40, kanajahbunn

The cutting department of cassel company has the following production and cost data for july. production costs 1. transferred out 12,300 units. beginning work in process $0 2. started 3,900 units that are 60% materials 62,856 complete as to conversion labor 12,622 costs and 100% complete as manufacturing overhead 23,100 to materials at july 31. materials are entered at the beginning of the process. conversion costs are incurred uniformly during the process. determine the equivalent units of production for (1) materials and (2) conversion costs. materials conversion costs total equivalent units of production link to text link to text compute unit costs. (round unit costs to 2 decimal places, e. g. 2.25.) materials $ conversion costs $ link to text link to text prepare a cost reconciliation schedule. (round unit costs to 2 decimal places, e. g. 2.25 and final answers to 0 decimal places, e. g. 1,225.) cost reconciliation costs accounted for transferred out $ work in process, july 31 materials $ conversion costs total costs $

Answers: 1

continue

Do you know the correct answer?

A company owns a 5-year old turret lathe that has a book value of $25,000. The present market value...