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lawyer [7]
3 years ago
15

Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled

machine. The new machine would cost $100,000 and would have a sixteen-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $10,000 per year to operate and maintain, but would save $40,000 per year in labor and other costs. The old machine can be sold now for scrap for $10,000. The simple rate of return on the new machine is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)
Business
1 answer:
inn [45]3 years ago
5 0

Answer:

26.4%.

Explanation:

Net Profit:

= Saving of Labor & other Costs - Maintenance Cost of Machine -  Depreciation On Machine (100,000/ 16 years)

= $40,000 - $10,000 - $6,250

= $23,750

Initial Investment:

= Cost of new Machine - Salvage value of old machine

= $100,000 - $10,000

= $90,000

Simple Rate of Return = Net Profit ÷ Initial Investments

= $23,750 ÷ $90,000

= 0.264 × 100

= 26.4%

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Wanda has a new idea for a book, which she won't have time to start writing until next year. if she decides to discuss her idea
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8 0
2 years ago
Machine Malfunction. Bruno, the president of a corporation operating work out facilities, convinced the board of directors to ap
andrew-mc [135]

Answer:

The correct answer is letter "C": The Business Judgment Rule.

Explanation:

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8 0
3 years ago
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the nec
Masteriza [31]

Given Information:

                                                  Per Unit  15,000 Units  Per Year Direct materials                                        $ 9         $135,000  

Direct labor                                           11              165,000  

Variable manufacturing overhead    2              30,000

Fixed manufacturing overhead, traceable  6*      90,000  

Fixed manufacturing overhead, allocated  13       195,000

Total cost                                                  $41                      $615,000

Solution:

Compute the total cost of making and buying the parts:

                                                    Make                           Buy

Cost of purchasing                        0                         525,000

                                                                               (15,000*35)

Direct materials                             135,000                     0

Direct Labour                                  165000                     0

Variable manufacturing overhead  30,000                    0

Fixed manufacturing overhead       57240                     0

                                                       -----------------------------------------------

Total Relevant cost                           387,240                  525,000

7 0
3 years ago
A bond that matures in installments at regular intervals is a __________.
Luden [163]
Serial bonds I believe?
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