What is the dissimilarity in equivalent uniform annual cost

Reference no: EM13683918

Machine A was purchased 3 years ago for $10,000 and had an estimated market value of $1,000 at the end of its 10-year life. Annual operating costs are $1,000. The machine will perform satisfactorily for the next seven years. A salesman for another company is offering Machine B for $50,000 with a market value of $5,000 after 10 years. Annual operating costs will be $600. Machine A could be sold now for $7,000, and MARR is 9% per year. Using the outsider viewpoint, what is the dissimilarity in the equivalent uniform annual cost (EUAC) of buying Machine B compared to continuing to use Machine A; i.e., EUAC(Machine B) – EUAC(Machine A)

Reference no: EM13683918

Questions Cloud

Existing debt service fund transactions : Existing Debt Service Fund Transactions

What is the conventional b-c ratio with present worth : A flood control project with a life of 12 years will require an investment of $300,000 and annual maintenance costs of $25,000. The project will provide no benefits for the first two years however will save $40,000 per year in flood damage starting i..

What is the after-tax investment value : A corporation purchased a machine for $60,000 five years ago. It had an estimated life of 10 years and an estimated salvage value of $9,000. The current book value of this machine is $12,500. If the current market value is $30,000 and the effective i..

Write an article manuscript on a biblically-based leadership : Write an article manuscript on a Biblically-based leadership topic of your choice that might be submitted to the Regent Global Business Review.

What is the dissimilarity in equivalent uniform annual cost : Machine A was purchased 3 years ago for $10,000 and had an estimated market value of $1,000 at the end of its 10-year life. Annual operating costs are $1,000. The machine will perform satisfactorily for the next seven years. A salesman for another co..

Firms effective income tax rate and its after-tax marr : A certain engine lathe can be purchased for $390,000 and depreciated over three years to a zero salvage value with the SL method. This machine will produce metal parts that will generate revenues of $260,000 (time zero dollars) per year. It is a poli..

Find the production possibility frontier : Find the production possibility frontier for this economy, find the competitive equilibrium and find competitive equilibrium if every consumer owns 100 units of labour and owns one firm.

Describe the opportunity cost of getting your degree : Describe the opportunity cost of getting your degree by analyzing what steps and economic factors a potential student should make when choosing to pursue an education. Given your answer, is getting a formal college education worth your opportunity co..

User Account

All Pages