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tiny-mole [99]
3 years ago
14

Corba Company is evaluating whether to replace an old machine with a new, more efficient machine. Corba purchased the old machin

e for $600,000, and there is $180,000 of accumulated depreciation recorded for the machine. It has a 10-year remaining useful life and a $0 salvage value. It costs $480,000 per year to operate. The new machine would have a 10-year useful life and a $0 salvage value. It would cost $1,200,000, and its annual operating costs would be $361,200. If the old machine is replaced, it can be sold for $48,000 today. What is the net advantage (disadvantage) of replacing the old machine?
Business
1 answer:
LiRa [457]3 years ago
6 0

Answer:

It is more convenient the new machine.

Explanation:

Giving the following information:

Corba purchased the old machine for $600,000, and there is $180,000 of accumulated depreciation recorded for the machine. It has a 10-year remaining useful life and a $0 salvage value. It costs $480,000 per year to operate. The new machine would have a 10-year useful life and a $0 salvage value. It would cost $1,200,000, and its annual operating costs would be $361,200. If the old machine is replaced, it can be sold for $48,000 today.

We will make an incremental analysis.

Year 0= 48,000 - 1,200,000= -1,152,000

Year 1 to 10:

Cost save= 480,000 - 361,200= 118,800*10= 1,188,000

Effect on income= 1,188,000 - 1,152,000= 36,000

It is more convenient the new machine.

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PLS HELPPP FASTTT!!!! Which of the following is not consistent with the efficient market hypothesis?
Morgarella [4.7K]

Answer:

c. News has no effect on stock prices.

Explanation:

A foreign exchange market can be defined as a type of market where the currency of a country is converted to that of another country. For example, the conversion of the United States of America dollars into naira, rands, yen, pounds, euros, etc., at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis which states that, asset (share) prices reflect all information and it is very much impossible to consistently beat the market. Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

According to the efficient market hypothesis, News has an effect on

the prices at which a stock is sold because it affects demand and supply.

6 0
3 years ago
A __________-__________ bond is a straight fixed-rate bond issued in one currency that pays coupon interest in that same currenc
riadik2000 [5.3K]

A dual-currency bond is known to be a hybrid debt instrument that often has payment obligations over the life of the issue. A dual currency bond is a straight fixed-rate bond issued in one currency that pays coupon interest in that same currency.

  • In dual currency bond, the borrower often makes coupon payments in one currency, but get the principal at maturity in another currency.

Its advantage is that Investors using this bonds often gets higher coupon payments than straight bonds etc.

Straight fixed-rate bond issues often have a Known maturity date where the principal of the bond issue is said to be repaid.

Learn more from

brainly.com/question/2692687

3 0
2 years ago
A stock’s price fluctuations are approximately normally distributed with a mean of $29.51 and a standard deviation of $3.87. You
Ivahew [28]

Answer:

$34.46

Explanation:

In this Question there is Highest value of 10% and the probability of 90%.

we will use following formula to calculate the highest value of the stock

z value = ( x - mean ) / Standard deviation

where

x = the highest value

z score value at 10% = 1.28

Placing value in the formula

1.28 = ( x - $29.51 ) / $3.87

1.28 x $3.87 = x - $29.51

$4.9536 = x - $29.51

x = $4.9536 + $29.51

x = 34.4636

8 0
3 years ago
What will happen to your credit score if you do not manage your debt wisely?
galina1969 [7]

Answer:

it will go down

Explanation:

common sense  

6 0
3 years ago
Read 2 more answers
Bledsoe Company received $15,000 cash from the issue of stock on January 1, 2013. During 2013 Bledsoe earned $8,500 of revenue o
kati45 [8]

Answer:

Total assets is increased by $18,100

Explanation:

The computation is shown below:

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= $15,000 + $8,500 - $5,400

= $18,400

This positive amount shows that there is an increase in the total assets for $18,100

The cash collected from the account receivable is not relevant. Hence ignored it

5 0
3 years ago
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