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
sergeinik [125]
2 years ago
13

A firm is choosing between two machines. Machine X has a first cost of $5,000 and a useful life of 5 years. Machine Y has a firs

t cost of $8,000; useful life of 12 years; salvage value of $2,000; maintenance cost of $150. Assume the minimum attractive return is 8%, which machine would you choose
Business
1 answer:
koban [17]2 years ago
7 0

Answer:

Machine Y

Explanation:

Machine X

EUAC = 5,000(A/P, 8%, 5)

EUAC = 5,000 (0.2505)

EUAC = $1252.50

Machine Y

EUAC = 8,000(A/P, 8%, 12) - 2,000(A/F, 8%, 12) + Maintenance cost

EUAC = 8,000(0.13269) - 2,000(0.0526) + 150

EUAC = $1061.52 - $105.20 + $150

EUAC = $1106.32

Conclusion: Machine Y will be chosen because it has the lesser Equivalent Uniform Annual Cost than Machine X

You might be interested in
What are the biggest obstacles facing walmart and other foreign retailers in India?
larisa86 [58]
Transportation could be a key factor as for obsticals

7 0
3 years ago
Based on these​ findings, what can we predict about total production long dash whether or not that production is included in the
Naily [24]

Answer:

If the workers had been paying other people to perform the household activities prior to unemployment, then total production will fall.

Explanation:

7 0
3 years ago
Brent has hired an OD consultant to understand why the company's process for paying invoices is so slow. He wants the consultant
Kamila [148]
Mechanic model of consulting
3 0
3 years ago
What is the advantage of Federal Loans over Private Loans? A. Federal Loans have fixed interest rates and Private Loans can have
iVinArrow [24]
The best answer for this question would be A. :) 
5 0
3 years ago
Crawford Fishing had a net income of $35,640 in 2017. They decided to pay $3,000 in dividends and keep the rest to help expand t
Lady bird [3.3K]

Answer:

'Retained income'.

Explanation:

We have been given that Crawford Fishing had a net income of $35,640 in 2017. They decided to pay $3,000 in dividends and keep the rest to help expand their production line.

We know that the net income that remains after paying dividends is known as 'Retained income'.

We also know that retained income can be used to pay off debts or it can be invested into business activities.

Therefore, the profit that Crawford Fishing keep to reinvest in the business is recorded as retained income.

8 0
3 years ago
Other questions:
  • Which describes a type of tax that funds city programs?
    7·1 answer
  • What type of consumer debt is the largest in the united states
    5·1 answer
  • Kiddy Toys produced beautifully made stuffed animals that many customers wanted. However, the product was so expensive that most
    14·1 answer
  • Safty nets should be provided where the falling distance is 25 feet or more
    12·1 answer
  • The journal entry to record direct labor for Department A and Department B would include a. a decrease to Work in Process for ea
    9·1 answer
  • If the price elasticity of supply is 0.75, then when the price of Good Y falls by 10 percent, the quantity supplied of Good Y:__
    15·1 answer
  • Which of the following is true about effective budgets?
    10·1 answer
  • Beverage International reports net credit sales for the year of $252,000. The company's accounts receivable balance at the begin
    5·1 answer
  • Greta, an elderly investor, has a degree of risk aversion of a = 3 when applied to return on wealth over a one-year horizon. She
    15·1 answer
  • Damien paid $41,000 for a new car. A few weeks later, he received a $2,000 cash rebate from the manufacturer. Damien later claim
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!