Qd 175. A high-speed electronic assembly machine was purchased four years ago for $50,000. At the present time, it can be sold for $25,000 or it can be kept in service for one more year with cash flows as shown in thetable (defender). The potential challenger to replace this machine has a purchase price of $41,500 and a usefule life of not more than 2 years with cash flows as shown in the table. If the before-tax MARR is 20%, answerthe two questions below:Market Value$41.50034,000$9,00014,50025,000Click the icon to view the interest and annuity table for discrete compounding when the MARR is 20% per year.1. The EUAC of the challenger for the two years service isOA. $29,760OB. $30,300OC. $27,300OD. $24,800OE. $36,065Year012Challenger2. The marginal cost of keeping the defender in service for one more year isOA. $29,000OB. $24,000OC. $33,000O D. $11,400OE. $13,000O&M CostsDefenderMarket Value$25,00017,000O&M Costs$16,000

Life cycle of challenger = 2 year Life cycle of defender = 1 year LCM of life cycle = 2 1)…

1. The EUAC of the challenger for the two years of service is OA. $29,760 OB. $30,300 OC. $27,300 O D. $24,800 O E. $36,065 2. The marginal cost of keeping the defender in service for one more year is OA. $29,000 O B. $24,000 OC. $33,000 O D. $11,400 OE. $13,000

1. The EUAC of the challenger for the two years of service is OA. $29,760 OB. $30,300 OC. $27,300 O D. $24,800 O E. $36,065 2. The marginal cost of keeping the defender in service for one more year is OA. $29,000 O B. $24,000 OC. $33,000 O D. $11,400 OE. $13,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which components of audit risk can an auditor control? Explain

A: An auditor is a professional who is responsible for verifying a business entity's financial…

Q: P12.2 (c)

A: Ending Retained Earnings = Beginning Retained Earnings + Net income - dividend declared…

Q: Discuss the different types of risks at risk management?

A: Events can have negative impact, positive impact, or both. Events with a negative impactrepresent…

Q: requirements

A: These are the following- 1. Such risks must be statistically predictable- This is one of the major…

Q: 6600 is not the answer

A: Child Tax Credit is $3,600 for children aged 6 and Under at end of 2021 Child Tax Credit is $3,000…

Q: E15.11

A: As posted multiple sub parts questions we are answering only first three sub parts kindly repost the…

Q: 321,818 is incorrect. What is the correct answer?

A: Revenue: We consider unit sales and price per unit to determine total revenue.Variable Costs: Based…

Q: spatial distances

A: Spatial distance is actually the length of the path or straight line distance between two points. In…

Q: What is the answer to part b? Is it -1245? Is the sign negative or positive?

A: The inventory valuation includes two methods named as FIFO (First in First Out) and LIFO (Last in…

Q: State the key differences between IFRS and U.S. GAAP.

A: IFRS stands for International Financial Reporting Standards. These are accounting standards issued…

Q: Explanation 1031 like-kind exchange

Q: What is Eurobond?

A: Eurobond It is a debt instrument that is designated in money other than the nation's home cash or…

Q: 605.53 is not the correct answer, please double check

A: Traditional Model & Expected Cash Flow Model: Traditional Approach - In the traditional…

Q: Which basis of measurement is allowed in standard IFRS16?

A: IFRS or International Financial Reporting Standards are the guidelines of accounting given by the…

Q: What is AAA (Section 1368(e))

A: The S corporation is a corporation that chooses to pass all income, losses, deductions, and all…

Q: The answer is somewhat close. The right answer is 1.5337 Please clarify

A: Stock price is $50 Strike price is $52 Risk free rate is 1% Time period is 3 months To Find: Value…

Q: E14.3 (b)

A: The cash flow statement is helpful for the stakeholders as they can identify the organization's…

Q: What is the goal of codification

A: Codification refers to the process of organizing and consolidating laws, rules, or standards into a…

Q: So the answer is 1394 or2450?

A: The deductible business expenses are the expenses which are incurred for business. If the expenses…

Q: Spot market Futures market Over the counter market Forwards markets

A: Commodity market are very important for determining the prices of commodities.

Q: Define R&D according to U.S. GAAP.

Q: 1. Audit evidence and reliability 2. Indicative going concern factors

A: Audit evidence is the information collected and used to support audit findings. It provides a…

Q: 1,525,394 is the wrong answer. what is the correct one?

A: The recovery of net working capital (NWC) refers to the return of funds initially tied to current…

Q: explain in details the scope, obectives

A: IAS / IFRS 33 deals with the calculation and presentation of earnings per share (EPS). It applies to…

Q: as fortuitous event? J

A: The pandemic issue has caused in an increase in breach of contract processes worldwide,…

Q: Given that im) = 0.1488144 and dm) 0.1417814, find m. %3D

A: i(m) = 0.1488144 d(m) = 0.1417814

Q: the recognition and measurement of IFRS 10 and

A: The answer has been mentioned below.

Q: I need professional answer: What is the difference between a ABS and an ABS CDO?

A: Asset-backed securities (ABS) and asset-backed security collateralized debt obligations (ABS CDOs)…

Q: hat are the Sarbanes-Oxley Act and GAAP?

A: In order to reduce the fraud in corporations while recording financial transitions or preparing…

Q: Over subscription and under subscription

A: Over subscription and under subscription are terms associated with the issue of shares of a company…

Q: Which of the following is not a special-purpose journal? A. SJ В. GI C. CRJ D. CDJ

A: Special Purpose Journals:- Transactions that are of similar nature get summarized so that it can be…

Q: Problem 9-12 (IAA)

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: was due inancial State nc. should report

Q: Why is a policy statement important?

A: A policy statement or an investment policy statement is a document created by the investment…

Q: Alternativ ousands) $500,000 gs (thousands) $131,900 y assumption, what is the PW 5.

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Explain briefly on the misconception about Riba

A: Riba is term that refers to the earnings and assets that are earned through corrupt means. The…

Q: Define R&D according to U.S. GAAP.Define R&D according to U.S. GAAP.

A: Property, Plant, and Equipment: Property, Plant, and Equipment refers to the fixed assets, having a…

Q: developed the IPSASs? d.What are the scopes of the IP

A: International Public Sector Accounting Standards (IPSAS) are a collection of accounting standards…

Q: The ct of plaie ppot Agt p pdon A SIPL C S195 D. L0 E Noor of the anwers comect

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: What is covered by Regulation S–X?

A: Regulation S-X is a U.S. Securities and Exchange Commission rule that covers annual reports from…

Q: 1. Prepare a contribution margin analysis report for the year ended December 31. 2. At a meeting of…

A: Variable Costing: Variable costing is the method that is used by the management (managers) for…

Question

Qd 175.

A high-speed electronic assembly machine was purchased four years ago for $50,000. At the present time, it can be sold for $25,000 or it can be kept in service for one more year with cash flows as shown in the
table (defender). The potential challenger to replace this machine has a purchase price of $41,500 and a usefule life of not more than 2 years with cash flows as shown in the table. If the before-tax MARR is 20%, answer
the two questions below:
Market Value
$41.500
34,000
$9,000
14,500
25,000
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 20% per year.
1. The EUAC of the challenger for the two years service is
OA. $29,760
OB. $30,300
OC. $27,300
OD. $24,800
OE. $36,065
Year
0
1
2
Challenger
2. The marginal cost of keeping the defender in service for one more year is
OA. $29,000
OB. $24,000
OC. $33,000
O D. $11,400
OE. $13,000
O&M Costs
Defender
Market Value
$25,000
17,000
O&M Costs
$16,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Answer

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

48. Which of the following is not an issue associated with liabilities?a. Reportingb. Identificationc. Valuation and Measurementd. Assessment
15. Briefly discuss the following: a. Meaning of ARR and reasons for its continued popularity. b. Meaning of IRR and its characteristics.
Q.3.2 Discuss technical insolvency and explain how this is different from absolute insolvency.
What is the fundamental difference between US GAAP and IFRS?
For what purpose Form 2553 is required?
What Is Section 1031? A brief explanation on this?
Hansen Corporation. a C Corporation (mot a manufacturer) reports the following items in income and expenses for 2021 Gross Revenue $900,000 Dividend Received from 30% owned Corp 200,000 LTCG 30,000 STCL 12000 City of Lee's Summit Bond Interest 10000 COGS 375000 Administrative Expenses 325000 Charitable Contribution 60,000 Compute Hansen's C Corp Taxable income?
What is covered by Regulation S–K?
Problem 20-96 from pic.
1.General information about IAS200. 2.What means of reasonable assurance? 3.Explain ISA200 requirement
That is not a possible solution. The possible anwsers are --> a. 122329.9877 b. 127159.8450 c. 122132.1253 d. 126907.4914 Please explain
b. 15800 is not correct - what is the correct answer?