1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Many automobile companies have custom options available for disabled people.
bazaltina [42]
<span>True. Many automobile companies offer adapted cars for disabled people, for example offering adjusted hand controls, altering access to the vehicle so it is wheelchair accessible or adjusting the space in the back of the vehicle so a wheelchair or mobility scooter can fit.</span>
8 0
3 years ago
A new alloy can be produced by Process A, which costs $200,000 to implement. The operating cost will be $10,000 per quarter with
Andreyy89

Answer:

Difference between A and B =$42398.5

Process B is better as its PW value is smaller than Process A.

Explanation:

In order to use present worth, both Alternatives must have same time period. Since Process B has 4 years means 16 quarters so we make process A to have 16 quarters two with 2% interest rate per quarter.

Note:

We are going to use Compound Interest tables to simplify our work. Formulas can also be used.

For Process A:

Present value of process A=-200,000-200,000(P/F,2\%,8)-10,000(P/A,2\%,16)+25,000(P/F,2\%,8)+25,000(P/F,2\%,16)

Present value of process A=-200,000-200,000(0.8535)-10,000(13.578)+25,000(0.8535)+25,000(0.7284)

Present value of process A=-$466,932.5

For Process B:

Present value of process B=-250,000-15,000(P/A,2\%,16)+40,000(P/A,2\%,16)

Present value of process B=-250,000-15,000(13.578)+40,000(0.7284)

Present value of process B=-$424,534

Difference between A and B =(-$424,534)-(-$466,932.5)

Difference between A and B =$42398.5

Process B is better as its PW value is smaller than Process A.

7 0
3 years ago
You are a leader in a paper manufacturer that has recently been charged with using too many trees and polluting groundwater arou
goldfiish [28.3K]
I am the leader of a manufacturer of labor and basically how can i help my environment well at first i would only use the necessities that i need to use. i wouldn't really go over board on a product. recyclables always do help in our environment as well.
5 0
3 years ago
Mia and Jack are two chocolate producers. Mia packs her chocolates in attractive boxes and charges slightly more than Jack does.
mestny [16]
<span>The answer would be this is a monopolistic competition. This is a kind of imperfect rivalry such that many creators sell merchandises that are distinguished from one another (for example, its branding or excellence) and henceforth are not perfect alternatives.</span>
3 0
3 years ago
Read 2 more answers
Scott consumes only two goods, rice and soup. His preferences are complete, transitive, monotonic and convex. When the price of
BaLLatris [955]

Answer:E(none of the above)

Explanation:

3 0
3 years ago
Other questions:
  • What information will u find in an address book
    10·2 answers
  • Which of the following statements about credit scores is TRUE
    11·1 answer
  • How to succeed in business?
    9·1 answer
  • Which word means a formal agreement between two or more governments?
    7·2 answers
  • On July 1, 2017, Mifflin Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July
    13·1 answer
  • "record revenue when goods or services are provided to customers" is the definition of which principle in accounting?
    11·1 answer
  • If a market is in equilibrium loading...​, is it necessarily true that all potential buyers and sellers are satisfied with the m
    5·1 answer
  • The marginal propensity to consume is:
    9·1 answer
  • The probability that a 80-year-old female in the U.S. will die within one year is about 0.048711. An insurance company is prepar
    12·1 answer
  • In accounting, currency, coins, checks, money orders, and funds on deposit in a bank are recorded in?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!