Based on internal rate of return analysis

Assignment Help Financial Management

Reference no: EM131552649

DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $10,000, an estimated life of 10 years, a salvage value of $1,000, and annual operating costs estimated at $0.01 per 1,000 gumdrops. Machine A37Y has a first cost of $8,000, a life of 10 years, and no salvage value. Its annual operating costs will be $300 regardless of the number of gumdrops produced. MARR is 6 percent/year, and 30 million gumdrops are produced each year. Based on an internal rate of return analysis, which machine should be recommended?

Reference no: EM131552649

Questions Cloud

Common stock value long dash-variable growth : Newman manufacturing is considering a cash purchase of the stock of Grips Tool.

Find the charge-to-mass ratio of the oxygen ion : Modify this calculation to find the charge-to-mass ratio of the oxygen ion with charge -2e.

Summarizing raw data using graphs and charts : Provide students hands-on experience with summarizing raw data using graphs and charts and interpreting results.

Determine value of charge-to-mass ratio of the hydrogen ion : You know that one faraday of charge releases one mole of hydrogen atoms. From that fact determine the value of the charge-to-mass ratio of the hydrogen ion.

Based on internal rate of return analysis : DelRay Foods must purchase a new gumdrop machine. Based on an internal rate of return analysis, which machine should be recommended?

Identify a state health policy and the tools : Which would be the most appropriate researchable population for use in your research project?

What would be the fractional increase in the droplet mass : Suppose the charge on a 1-µm radius droplet increased by 3e because it picked up three nitrogen ions.

Write program that performs sort by using binary search tree : Design, write and test a program that performs a sort by using a binary search tree. The GUI must be generated by code that you write.

What is the maximum speed to which they can be accelerated : A cyclotron (Fig.) is an apparatus for accelerating charged particles to very high kinetic energies. Rapidly moving charged particles are coaxed into circular.

User Account

All Pages