A company can invest in two alternatives: Machine Eco and Machine Top. The controlling department provides the following data. Eco total annual costs annual sales purchasing price machine residual value 3.600.000,00 € 4.000.000,00 € 3.000.000,00 € € Top 3.700.000,00 € 4.200.000,00 € 4.500.000,00 € €
A company can invest in two alternatives: Machine Eco and Machine Top. The controlling department provides the following data. Eco total annual costs annual sales purchasing price machine residual value 3.600.000,00 € 4.000.000,00 € 3.000.000,00 € € Top 3.700.000,00 € 4.200.000,00 € 4.500.000,00 € €
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Question 7
A company can invest in two alternatives: Machine Eco and Machine Top.
The controlling department provides the following data.
Eco
total annual costs
annual sales
3.600.000,00 €
4.000.000,00 €
3.000.000,00 €
€
8
purchasing price machine
residual value
useful life (years)
The cost of capital are 10%.
How would you decide using the
• profit comparison calculation and
the profitability comparison?
When will the machines be amortized?
Question 8
Top
3.700.000,00 €
4.200.000,00 €
4.500.000,00 €
€
8
Please refer to question no. 7. What would be the results Eco had a residual value of € 500.000,-- and
Top of € 600.000,--?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83b23eec-c845-43b3-a8d5-504419e00655%2F41702a9d-e309-42f8-a9f2-aea1228711b8%2F5g5sow_processed.png&w=3840&q=75)
Transcribed Image Text:Question 7
A company can invest in two alternatives: Machine Eco and Machine Top.
The controlling department provides the following data.
Eco
total annual costs
annual sales
3.600.000,00 €
4.000.000,00 €
3.000.000,00 €
€
8
purchasing price machine
residual value
useful life (years)
The cost of capital are 10%.
How would you decide using the
• profit comparison calculation and
the profitability comparison?
When will the machines be amortized?
Question 8
Top
3.700.000,00 €
4.200.000,00 €
4.500.000,00 €
€
8
Please refer to question no. 7. What would be the results Eco had a residual value of € 500.000,-- and
Top of € 600.000,--?
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