You are considering two types of machines fora manufacturing process.◼◼ Machine A has a first cost of $75,200, and itssalvage value at the end of six years of estimatedservice life is $21,000. The operating costs ofthis machine are estimated to be $6,800 per year.Extra income taxes are estimated at $2,400 peryear.◼◼ Machine B has a first cost of $44,000, and itssalvage value at the end of six years’ service isestimated to be negligible. The annual operatingcosts will be $11,500.Compare these two mutually exclusive alternativesby the present-worth method at i = 13%

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A: Depreciation- Depreciation is the gradual decrease in the value of assets caused by wear and tear.…

Q: After spending $ 9 comma 100 on​ client-development, you have just been offered a big production…

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Q: A widget machine will cost $480,000.  The anticipated increase in revenue will be $140,000/year for…

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Q: The equipment needed to manufacture a product costs $1,000,000 to purchase.  This equipment has a…

A: SOLUTION- BREAK EVEN POINT  IS THE POINT AT WHICH TOTAL REVENUE EQUALS TO TOTAL COST OR EXPENSES.

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Q: Company x uses machines to manufacture x. One machine costs $142,000 and lasts about 5 years before…

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Q: Poly-Chem Plastics is considering two types of injection molding machines: hydraulic and electric.…

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A: Operating Cashflow = PAT +Depreciation

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Q: about 5 years before it needs replaced. The operating cost per machine is $16,000 a year. What is…

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.