Calculate the eac for machine

Assignment Help Business Management
Reference no: EM131105476

Vandelay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,078,000 and will last for six years. Variable costs are 30 percent of sales, and fixed costs are $220,000 per year. Machine B costs $5,274,000 and will last for nine years. Variable costs for this machine are 25 percent of sales and fixed costs are $155,000 per year. The sales for each machine will be $10.6 million per year. The required return is 9 percent, and the tax rate is 34 percent. Both machines will be depreciated on a straight-line basis. The company plans to replace the machine when it wears out on a perpetual basis.

Calculate the EAC for each machine. (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Reference no: EM131105476

Questions Cloud

Which five ratios do you feel are best monitors of health : Explain the meaning of each ratio. (What information does it provide?) Do companies want the ratio to be a higher or a lower figure? Why? Which 5 ratios do you feel are the best monitors of the health of a company, and why?
Time of day you consumed a particular media : You will be graded on the written detailed analysis and reflections of the media you consumed and observed within your media diary. That is, do you make sense of the overall patterns of mainstream media using critical thinking skills?
What is the best return loss that can be obtained : What is the best return loss that can be obtained with an optimum matching network?
Best-case scenario analysis : Suppose the company believes all of its estimates are accurate only to within ±10 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst-case scenario?
Calculate the eac for machine : Calculate the EAC for each machine. (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e...
What are the two leading stock markets : What are the two leading stock markets? Describe the two basic types of stock markets.
About and discussing the barbara kingsolver quote : "There's no shame in depending on each other. There's a heroism in ordinariness and connectedness and using relationship skills to get through difficult times, as opposed to the isolated heroism of the cowboy.
Has the foreign corrupt practices act been violated : Jose offers the head of Venezuelan immigration services the use of the company's New York City penthouse and personal use of the company's limousine the next time the official visits the United States for putting Sonja's papers through quickly. Th..
Do you think this is the correct solution : Do you think this is the correct solution? Why? (This problem shows that the one-mode impedance viewpoint does not always provide a correct analysis.)

Reviews

Write a Review

Business Management Questions & Answers

  Leadership skills through a college course or courses

Should leadership be the manager's job, or should leadership be a shared process? Explain your answer. Are you interested in sharing leadership, or do you prefer to be a follower. Explain your answer.

  Training methods and organizational development1 how does

training methods and organizational development1. how does hr assist management within your company to meet their

  Explain what strategy would you propose

Explain What strategy would you propose to further eradicate organized crime and where should our efforts best be directed

  What do their annual reports indicate

What is the alignment of the company's Mission, Vision, Values, and Goals with Stakeholders' Interests? Which of the elements consider the goals and needs of specific stakeholder groups? I need specific examples.

  The advertising media and creative department work

Discuss the following:Why is it important that the advertising media and creative department work closely together?Why is public relations sometimes referred to as a marketing stepchild?

  Employers reject as a potential selection technique

Which of the following should employers reject as a potential selection technique, based on current evidence? a. work sample b. structured interview c. aptitude test d. graphology e. assessment centre

  Contribution margin ratios

Kumar's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and that anything past that point was pure profit.

  Would merger qualify for further scrutiny under guidelines

The merged firm is initially assumed to have twice the market share of the other firms. Would this merger qualify for further scrutiny under the guidelines?

  What is a maintenance plan

BUSN222 - What is a maintenance plan and how does it affect the property - how does the American with Disabilities Act play a role in the maintenance plan?

  Business operations management layout design

Business Operations Management Layout Design for custom bicycle assembler - Identify the type of layout that might be adopted by a high end custom bicycle assembler

  Problem regarding the adr arbitrage

China Telecom Corp. is simultaneously listed on Hong Kong Stock Exchange (HKSE) and New York Stock Exchange (NYSE). It trades as an ORD on the HKSE and as an ADR on the NYSE. The ordinary share (ORD) price of China Telecom is HKD 4 on HKSE. The sp..

  Prepare organizational structure powerpoint on wal-mart

Explain the organizational structure of your selected organization, then compare and contrast it with two different organizational structures.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd