Business, 02.04.2021 20:00, alvaradovanessa14
A piece of equipment now is use at a plant is under consideration for replacement. It has a market value of 8,000. This market value is expected to decline by 50% per period (from the previous period) until it reaches zero at the end of period 3. The estimated operating and repair cost for the next period is 26,000 and this is expected to grow at a rate of 15 percent per period. A replacement has been located that will cost 32,000 to purchase. After one period the market value of this new equipment will be 22,000 and this value is expected to decrease by 35% per period until the expected end of service after 7 periods. The first period operating cost is expected to be 14,000 increasing by 15 percent per year. Applying an interest rate of 12%, answer the questions below.
Required:
a. What is the lowest period equivalent cost for keeping the new replacement equipment in operation for its economic service life?
b. What is the economic service life of the new replacement?
c. Based on your analysis, what should the decision be now regarding replacement?
Answers: 1
Business, 22.06.2019 04:10, maddylaugh
Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.
Answers: 1
Business, 22.06.2019 07:00, Maria3737
For the past six years, the price of slippery rock stock has been increasing at a rate of 8.21 percent a year. currently, the stock is priced at $43.40 a share and has a required return of 11.65 percent. what is the dividend yield? 3.20 percent 2.75 percent 3.69 percent
Answers: 3
Business, 22.06.2019 10:00, ladnerhailey16
You are president of a large corporation. at a typical monthly meeting, each of your vice presidents gives standard area reports. in the past, these reports have been good, and the vps seem satisfied about their work. based on situational approach to leadership, which leadership style should you exhibit at the next meeting?
Answers: 2
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