Calculate the total avoidable costs in keeping old machine

Assignment Help Accounting Basics
Reference no: EM132058841

Question - Bach Company paid $120,000 to purchase a machine on January 1, 2012. During 2014, a technological breakthrough resulted in the development of a new machine that costs $150,000. The old machine costs $50,000 per year to operate, but the new machine could be operated for only $18,000 per year. The new machine, which will be available for delivery on January 1, 2015, has an expected useful life of four years. The old machine is more durable and is expected to have a remaining useful life of four years. The current market value of the old machine is $40,000. The expected salvage value of both machines is zero.

Required: Calculate the total avoidable costs in keeping the old machine and buy a new machine.

Reference no: EM132058841

Questions Cloud

Your trading desk has had standard deviation : IIOver the past 6 months, the profit and loss recorded by your trading desk has had a standard deviation of $3 million per trading day.
Explain the rights and duties of landlords : Explain the rights and duties of landlords.
Learn about smartart graphics : Take a look at some of the different options for SmartArt graphics found in Microsoft Word, and indicate which one you feel you are most likely to use.
Discuss the talent management planning process : Describe opportunities for improvement in the talent management planning process. Create at least two (2) more effective approaches to meet the talent.
Calculate the total avoidable costs in keeping old machine : The current market value of the old machine is $40,000. Calculate the total avoidable costs in keeping the old machine and buy a new machine
What should you be willing to pay for share of ups today : Your required return on UPS stock is 8%. What should you be willing to pay for a share of UPS today?
Discuss goals and objectives of conceptual framework project : Case - The Theoretical Foundation of Accounting Principles. Discuss goals and objectives of Conceptual Framework Project
Why has fosmay limited signed this agreement : What is forward rate agreement and why has Fosmay Limited signed this agreement
What role it plays in modern world : It is on Brominated Flame retardants what role it plays in modern world? possible detrimental heaalth effects associated with the chemical Position

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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