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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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Judging from their condition, the need some welfare or subsidies that should be added

For example :

- Their government should provide more infrastructure such as roads and water pipe for the people
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Onboarding practices accomplish which of the following? A. gives new employees time to determine where they want to go on vacati
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3 years ago
Leah has $300 in her checking account and her first bank credit card. She wants to purchase a couch for $250, and Christmas gift
notsponge [240]

Answer:

see below

Explanation:

Leah can choose between the following two options.

Option 1:

Leah can withdraw $250 from her checking account and pay for the couch in cash. If she has a debit card on her checking account, she can use it to pay for the couch. The Christmas gift costs less than the couch. She can use a credit card to pay for the gift. Since credit card transactions are debts, she will incur a lower amount of debt.

Option 2:

Depending on her credit card limit, she can pay for the two items on credit. Once the credit statement is generated, she can use the money in her checking account to offset part of the credit card balance.

3 0
2 years ago
Read 2 more answers
Taxes are cut by 10% for all income levels. What type of policy is being conducted
Monica [59]

When taxes are cut, the type of policy that is being conducted is a expansionary fiscal policy.

<h3>What is a expansionary fiscal policy?</h3>

Fiscal policies are policies enacted by the government to control the money supply in the economy. Fiscal policy can either be contractionary or expansionary.

Expansionary fiscal policy is when the government increases the supply of money in the economy. This can be done either by reducing the taxes or increasing their level of spending.

Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing their spending or increasing taxes.

To learn more about fiscal policies, please check: brainly.com/question/25716528

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3 0
8 months ago
An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you $200 at the end of Year 4,
Nesterboy [21]

Answer:

Present value is $923.90 and future value is $1,466.24

Explanation:

Given:

$100 is received in the next three years. It's an annuity so refer present value of annuity table. Present value annuity factor for 3 years, 8% is 2.5771. So present value of this will be $257.71 (2.5771 × 100). Similarly calculation for inflows from the investment are as follows:

$200 at 8% in the 4th year, present value factor of lumpsum amount is 0.7350 which is $147 (0.735 × 200)

$300 at 8% in the 5th year, present value factor of lumpsum amount is 0.6806 which is $204.18 (0.6806 × 300)

$500 at 8% in the 6th year, present value factor of lumpsum amount is 0.6302 which is $315.10 (0.6302 × 500)

Total present value of investment is $923.90 (257.71 + 147 + 204.18 + 315.10)

Present value of inflows are calculated. Calculate future value of these amounts.

future value factor @8%, 6 years is 1.5869.

Future value of first inflow is $408.96 (257.71 × 1.5869)

Future value of second inflow is $233.27 (147× 1.5869)

Future value of third inflow is $324.01 (204.18 × 1.5869)

Fourth Inflow in the sixth year is $500

Total present value of investment is $1,466.24 (408.96 + 233.27 + 324.01 + 500)

8 0
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