Considering replacing machine

Assignment Help Business Economics
Reference no: EM13895985

A company is considering replacing a machine that was bought six years ago for $50,000. The machine, however, can be repaired and its life extended by five more years. If the current machine is replaced, the new machine will cost $44,000 and will reduce the operating expenses by $6,000 pe year. The seller of the new machine has offered a trade-in allowance of $15,000 for the old machine. If MARR is 12% per year before taxes, how much can the company spend to repair the existing machine?

$22,371

$7,371

-$1,000

$50,628

Reference no: EM13895985

Questions Cloud

Describe any differences between career development : Can you describe any differences between career development and employee development? What types of employee development experiences have you had in past/current workplace positions? Have these experiences affected your overall career development?
Financial crisis and the subsequent recession : During the 2008 financial crisis and the subsequent recession, how did major U.S. banks respond to the actions of the Federal Reserve? How did those monetary policy actions affect U.S. businesses and households?
Compare economic performance in oligopolistic market : Compare economic performance in an oligopolistic market with that in a purely competitive one. Is oligoploy the best market structure for rapid technological development? Why or why not?
What is the role of hrm specifically : How is HRM  directly involved with the new employee orientation? What is the role of HRM specifically?
Considering replacing machine : A company is considering replacing a machine that was bought six years ago for $50,000. The machine, however, can be repaired and its life extended by five more years. The seller of the new machine has offered a trade-in allowance of $15,000 for the ..
Production of electricity result in market failure : How do externalities in the production of electricity result in market failure?
Hub with the fortress hub of a global network : A smaller network carrier (hub and spoke airline) is considering expanding its product by adding a new route connecting its hub with the “fortress hub” of a global network carrier (see Doganis sections 9.6 & 9.7). Choose any one of the topics from Ba..
Need to use four primary sources : Need ideas, for term paper. On Public Education. Needs to be done in 5 days. Need to use four primary sources that relates, to Voices of Freedom, A Documnent In History. Author Eric Foner,  Fourth Edition Volume 2.
Production of electricity by utility generates pollution : Suppose the production of electricity by a utility generates pollution that harms others. Suppose also that Coase bargaining can occur between the utility and the victims of pollution but that the utility has not been legally liable for the damages f..

Reviews

Write a Review

Business Economics Questions & Answers

  Long-run macroeconomic equilibrium and stock market boom

Long-run Macroeconomic Equilibrium and Stock Market Boom Let us assume the economy reaches its long-run macroeconomic equilibrium in 2020. When the economy is in the long run macroeconomic equilibrium, the stock market will also reach its boom. Which..

  Economic activities

A used car dealer purchased my 1992 Ford Tempo for $1,000. He paid a worker $200 to wash it. He purchased four tires for a total of $400 to replace the existing tires on the car. He sold the car for $4,000. All these economic activities took place in..

  Think of paolos reasoning

Open a pizza restaurant and is considering either selling the bonds and using the 100,000 to start his restaurant or borrowing the 100,000 from a bank which would charge him an annual interest rate of 7 percent.

  Consumer expenditure and government tax revenue

How increasing tax rates do 10 % may affect company revenue, consumer expenditure and government tax revenue in the short run for imported wine?

  Profit-maximizing monopolist will produce

A profit-maximizing monopolist will produce at a point on the _____ portion of the demand curve where _____.

  Describe how much the consumer plans to spend in each year

Describe how much the consumer plans to spend in each year and how much she borrows or lends in the first year.

  Illustrate what should the us congress - federal reserve

Illustrate what should the U.S. Congress and the Federal Reserve do about it. Write your individual answers to both questions listed above together not each minimum 300 words in essay format in APA style.

  What is market interest rate

A lump sum of $5.2 million in the first year. Assume the market interest rate will be 6% for all these years.

  Qthe dodge city bank is planning its loans for the next

q.the dodge city bank is planning its loans for the next several years and is using a model of loan demand developed

  Which strategy profiles are rationalizable

There is a dollar on the table, which each player can try to grab. If only one player grabs, G, and the other does not, D, the player who grabs gets the dollar and his payoff is 1, while the other player's payoff is 0.  Which strategy profiles are ra..

  Plots the supply curve for the sellers

This graph plots the supply curve for the sellers (orange squares). You need to add the demand curve. Plot the buyer values by dragging points onto the graph (blue circles). Tool tip: For information on using the graph tool, click the Help button.

  What percentage change in the CPI

According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%. What percentage change in the CPI up unti..

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