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balu736 [363]
2 years ago
14

Webster's Words has a printing press which they are not using at the present time. In fact, they have not used this equipment fo

r two years. The equipment has no market value because it has been customized to their particular operations. They could sell the machine as scrap metal for $1,500 maximum. The press is eight years old and cost $163,000 new. The current book value is $2,100. The company is trying to decide if a new project would be a feasible means of utilizing this equipment. The value of the press that should be included in the project analysis is:
Business
1 answer:
Free_Kalibri [48]2 years ago
4 0

The value of the press that  Webster's Words should include in the project analysis is $1,500.

The two major considerations in a project analysis are the cost of the project input and the value that the project's output will generate for the entity.

In this scenario, the current book value of the press is <em>not relevant</em> in the project analysis. The scrap value should be considered as it produces a value that can reduce the project's cost and not the <em>committed or sunk cost</em> of the old press.

Data and Calculations:

Maximum scrap value of press = $1,500

Initial cost of the press eight years ago = $163,000

Current book value = $2,100

Relevant value of the press = $1,500 (scrap value)

Thus, the value of the press in the project analysis is $1,500.

Learn more: brainly.com/question/13813417

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In colloquial language, the average is a single number representing a list of numbers, usually the sum of the numbers divided by the number of numbers in the list. For example, the average of the numbers 2, 3, 4, 7, and 9 is 5.

Suppose there are four types of means: mean, mode, median, and range. In fact, the range is a measure of spread or spread, while others are the most common "measure of central tendency".

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Learn more about averages   here

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