Accurate answer A new machine with a purchase price of $90,000,transportation costs of $8,000, installation costs of$6,000, and special handling fees of $2,000, would havea cost basis of:a. $106,000b. $110,000c. $108,000d. $102,000

Step 1:Cost of capital asset includes a purchase price, and directly attributable costs that are…

Answered: A new machine with a purchase price of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2. Choose from the two machines which is more economical? Machine A Machine B P 8,000 P 14,000 15 15 0 2,000 P 3,000 P 1,200 3% First Cost Life Salvage Value Annual Operation P 2,400 Annual Maintenance P 1,000 Taxes and Insurance 3% Which will you choose if minimum required profit is 16%. Use Rate of Return on Additional Investment, Annual Cost Method and Present Worth Method
For the below ME alternatives, which machine should be selected based on the AW analysis. MARR=10% First cost, $ Annual cost, $/year Salvage value, $ Life, years Machine A 15000 B- AW for machine B= 8,342 4,000 Answer the below questions : Machine B 6 20,447 6,000 5,000 Machine C 10000 4,000 1,000
P1: Compute payback period and describe its use.. FasTrac is considering buying a new machine: Cost.. $16,000 Useful life.. 8 years Salvage value. $ 0 Expected production.. 30,000 units Product selling price per unit.. $ 30 Calculate the payback period.
Barney need to choose between two equipment for his project. Equipment A: First cost = 200,000.00, Annual Operating Cost = 32,000.00 , Annual Labor Cost = 50,000.00 , Property taxes = 3%, Payroll taxes = 4%, Estimated life = 10 years. Equipment B: First cost = 300,000.00, Annual Operating Cost = 24,000.00 , Annual Labor Cost = 32,000.00 , Property taxes = 3%, Payroll taxes = 4%, Estimated life = 10 years. If the minimum required rate of return is 15%, which equipment should be selected? (USE ROR method) a. Both b. Equipment B c. I do not know d. Equipment A
Barney need to choose between two equipment for his project. Equipment A: First cost = 200,000.00, Annual Operating Cost = 32,000.00 , Annual Labor Cost = 50,000.00 , Property taxes = 3%, Payroll taxes = 4%, Estimated life = 10 years. Equipment B: First cost = 300,000.00, Annual Operating Cost = 24,000.00 , Annual Labor Cost = 32,000.00 , Property taxes = 3%, Payroll taxes = 4%, Estimated life = 10 years. If the minimum required rate of return is 15%, what is the total annual cost of equipment A? (USE Annual cost method) a. P130,987 b. P129,850 c. P135,550 d. P126,056
Reference: Case Study S Dunn Manufacturing is considering the following two alternatives. The cost information for the two proposals for replacing an equipment are provided are in table below. Initial cost Benefits/year Machine X $120,000 $20,000 for the first 10 years and $9,000 for the next 10 years Life Salvage value $40,000 MARR 5.2. The NPW of machine X is A) $35,158 B) $48,192 C) $50,752 Machine Y $96,000 $12,000 per year for 20 years. 20 years 8% $20,000
Can you solve the question step by step and explain which formulas you use?
Kaa pert of ion: esunent Proje The project cost.of investment is ? 6,00,900 and scrap value of? 15,000. The profits after depreciation and laxes are 20,000; 50,000; 35,000; 60,000 and ? 25,000. Calculate return per unit of investment.
Given Problem: A. If money is worth 17.383%, what is the Total Annual Cost of Machine B (using Annual Worth Method)? B. Which of the two machines is more economical?
A new project being considered by BLW Co would require 1,000 hours of skilled labour. The current workforce is already fully employed but more workers can be hired in at a cost of $20 per hour. The current workers are paid $15 per hour on a project that earns a contribution of $10 per hour. What is the relevant cost of labour to be included in the project appraisal? A $10,000 B $15,000 C $20,000 D $25,000
Two machines with the following cost estimates are under consideration for a dishwasher assembly process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis of an annual worth analysis.
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A new machine with a purchase price of $90,000, transportation costs of $8,000, installation costs of $6,000, and special handling fees of $2,000, would have a cost basis of: a. $106,000 b. $110,000 c. $108,000 d. $102,000