Two investments involving a virtual mold apparatus for producing dental crowns qualify for different property classes. Investment A has a cost of $54,900, lasts 9 years with no salvage value, and costs $150,000 per year in operating expenses. It is in the 3-year property class. Investment B has a cost of $83,000.00, lasts 9 years with no salvage value, and costs $125,000 per year. Investment B, however, is in the 7-year property class. The company marginal tax rate is 25%, and MARR is an after-tax 10%. a. Based upon the use of MACRS-GDS depreciation, compare the AW of each alternative. AWA-$ 120020.96 AWB-$ Which should be selected? (Investment A; Investment B) Investment B b. What must be Investment B's cost of operating expenses for these two investments to be equivalent? $ 14483.27 105537.69

Two investments involving a virtual mold apparatus for producing dental crowns qualify for different property classes. Investment A has a cost of $54,900, lasts 9 years with no salvage value, and costs $150,000 per year in operating expenses. It is in the 3-year property class. Investment B has a cost of $83,000.00, lasts 9 years with no salvage value, and costs $125,000 per year. Investment B, however, is in the 7-year property class. The company marginal tax rate is 25%, and MARR is an after-tax 10%. a. Based upon the use of MACRS-GDS depreciation, compare the AW of each alternative. AWA-$ 120020.96 AWB-$ Which should be selected? (Investment A; Investment B) Investment B b. What must be Investment B's cost of operating expenses for these two investments to be equivalent? $ 14483.27 105537.69

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Kem operates a bakery. Her average revenue generated is $30 and the total sales she did were 50…

A: The information being given is:- Average revenue for Kem's bakery= $30 Total sales = 50 units We…

Q: Discuss how your priorities would affect the underlying interests ofbothyour team and the other…

A: Objective Alignment:Positive Impact: Teams are more aware of how their work affects the overall…

Q: We have the results from our first Facebook ad campaign. The following table summarizes the results…

A: Given that, We have the results from our first Facebook ad campaign. The following table summarizes…

Q: Calculate the value of total revenue if profit is $3000 and total cost is $1800

A: According to the above given question,we have the values:- Total cost = $1800 Profits = $3000 Using…

Q: The average total cost of producing shoes will, as businesses increase production. Select an answer…

A: Total cost: Total cost can be defined as the sum total of the cost that is incurred in the cost of…

Q: Calculate total revenue for shoes firm whose profit is $400 and Total cost is $800

A: The data presented in the question above is:- Profit of the firm = $400 Total cost = $800 Total…

Q: Choose a current news item about a company enduring a difficult situation such as layoffs,…

A: Two incredible powers are transforming the very nature of work: robotization and ever fiercer…

Q: agency relationship created?

A: An agency relationship are formed between two parties when one party agrees to represent the other…

Q: he cost a company incurs each month when it produces q pairs of shoes. Graph the average cost and…

A: AC(average cost) is the ratio of TC(total cost) and q(quantity). MC(marginal cost) is the derivative…

Q: If price is greater than marginal cost for the last unit produced Multiple Choice O profit is…

A: This can be described as the concept that shows the actual cost of any decision which encompasses…

Q: Profits for Mia's chocolate shop is $2300 Total revenue generated is $4100 Find the value of…

A: The information being given is:- Profit for chocolate shop = $2300 Total revenue = $4100 We have to…

Q: Michael Scott's recently founded paper company, aptly named "Michael Scott Paper Company" sets the…

A: Given Information Total Cost = 3q +10Price = $5.5/reamTotal Revenue = $34,100

Q: following question that I posted is considered as a one question

A: expected rise in future prices has direct impact on current demand of a product . for example when…

Q: Identify the different parts of the graph. [A]: Type your answer here [B]: Type your answer here…

A: Business cycle is the process of fluctuations of economics activities over period of time where…

Q: How do we measure the Profit Margin on Sales?

A: Profit margin is a type of profitability ratio that represents the percentage of sales that have…

Q: Complete the table below: Output Total Cost (RM) Total variable cost (RM) Total fixed cost (RM)…

A: In the economics, the cost of production, which comprises expenses of many kinds, is incurred during…

Q: get step by step solutions

A: Step 1: Kindly try reuploading the question.I think you forgot to ask the question so, nothing can…

Q: Which of the following best describes why the Hours of Service Regulations were put into place? O To…

A: The driver test is important to ensure the safety of peope with having the all relevant information.…

Question

Give typing answer with explanation and conclusion

Two investments involving a virtual mold apparatus for producing dental crowns qualify for different property classes. Investment A
has a cost of $54,900, lasts 9 years with no salvage value, and costs $150,000 per year in operating expenses. It is in the 3-year
property class. Investment B has a cost of $83,000.00, lasts 9 years with no salvage value, and costs $125,000 per year. Investment
B, however, is in the 7-year property class. The company marginal tax rate is 25%, and MARR is an after-tax 10%.
a. Based upon the use of MACRS-GDS depreciation, compare the AW of each alternative.
AWA-$
120020.96
AWB - $
Which should be selected? (Investment A; Investment B) Investment B
b. What must be Investment B's cost of operating expenses for these two investments to be equivalent? $
14483.27
Round your answer to 2 decimal places. The tolerance is ± 10.
105537.69

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Determine the problem

VIEW

Step 2: Derive the AW

VIEW

Step 3: Change B's O&M cost to equate AW

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 4 images

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, economics and related others by exploring similar questions and additional content below.

Similar questions

how to answer this?
Quantity/Output Total Fixed Cost Average Fixed Cost Total Variable Cost Average Variable Cost Total Cost Average Total Cost Marginal Cost (units) (dollars) (dollars) (dollars) (dollars) (dollars) (dollars) (dollars) 0 $50 $0 10 $50 $20 25 $50 $40 45 $50 $60 60 $50 $80 70 $50 $100
How Satya Nadella manage and run micorsoft?
Subject - account Please help me. Thankyou.
Bill works for a large food service company. In one hour he can make 13 sandwiches or he can make 36 salads. Bill works 8 hours per day. If Bill needs to make 33 sandwiches then how many salads can he make? Round your answer to the nearest whole number.