Does it make sense for alden to replace the current machine

Assignment Help Finance Basics
Reference no: EM13301348

Alden Ltd is evaluating the purchase of a new machine that will cost $422,000.The existing machine is 200,000.The new machine will result in production increase by 75,000 units.All production is sold a price of $6 per unit .With the new machine costs will decline by$0.40 per unit.Using marginal analysis ,does it make sense for Alden to replace the current machine?

Reference no: EM13301348

Questions Cloud

A differentiation focus or cost focus strategy : Think of a form that has attained a differentiation focus or cost focus strategy. Are their advantages sustainable? Why? Way not (Hint: Consider its position vis-à-vis porters five forces.)
How many molecules of gas are inside the balloon : The ideal gas law relates the temperature, pressure and volume of an ideal gas. How many molecules of gas are inside the balloon
Explain the molar composition of the vapor in equilibrium : What is the molar composition of the vapor in equilibrium with a boiling liquid that has a composition of 60% A and 40% B
Find the height that the satellite is orbiting above surface : For the known values of the Earth such that RE = 6.37×106m and ME = 5.97×1024kg, find the height that the satellite is orbiting above the surface
Does it make sense for alden to replace the current machine : With the new machine costs will decline by$0.40 per unit.Using marginal analysis ,does it make sense for Alden to replace the current machine?
Select an example of a company that you know practices : In working out your responses to the Discussion Question, you should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make to relevant examples from real compa..
How to use the corporate valuation model : Explain how to use the corporate valuation model to find the price per share of common unity.
What will be the new price of the stock : Jersey Mining earns $9.50 a share, sells for $90, and pays a $6 per share dividend. The stock is spit two for one and a $3 per share cash dividend is declared.
Compute the correct contact lens prescription : A farsighted man uses eyeglasses with a refractive power of 3.57 diopters. Wearing the glasses 0.026 m from his eyes, What is the correct contact lens prescription

Reviews

Write a Review

Finance Basics Questions & Answers

  What will be the net proceeds from the issue for esp

what will be the net proceeds from the issue for ESP? assume that the only costs associated with the issue are those paid to the investment banker. c. If the company needs $39 million to finance its future growth, how much debt must ESP issue?

  What must the coupon rate be on these bonds

Ponzi Corporation has bonds on the market with 14.5 years to maturity, a YTM of 7.50 percent, and a current price of $1,061. The bonds make semiannual payments.

  Eligibility requirements for a qualified pension plan

Which of the following could be permitted as eligibility requirements for a qualified pension plan?

  Prepare closing entries and the post- closing trial balance

Prepare closing entries and the post- closing trial balance.

  Which currency is depreciated

Suppose that the current Bid-Offer on the Euro is $1.21/E and $1.23/E, and the three-month forward is $1.185/E.

  What would be the amount of your profits

Describe what an arbitrage would do to take advantage of IRP not holding. If you engaged in a $10 million covered interest arbitrage - what would be the amount of your profits?

  Under what circumstances does the price of the call

A trader buys a European call option and sells a European put option. The options have the same underlying asset, strike price, and maturity. Describe the trader's position. Under what circumstances does the price of the call equal the price of th..

  Calculate the risk premiums for each factor

Assume stock returns can be explained by a 2 factor model. The firm-specific risks for all stocks are independent. The following table shows the data for two diversified portfolios:

  Computing the stock price

The growth rate for McDonalds is expected to be 10 percent for one year. After that, the dividend rate is expected to grow at a rate of 6 percent indefinitely.

  Find the value of common stock

A security analyst forecasts dividends of Kalpert Enterprises for the next 3 years. Her forecast is D1=$1.50, D2=$1.75, and D3=$2.20. She also forecasts a price in 3 years of $48.50.

  How many shares will kurz repurchase

How many shares will Kurz repurchase? d) What are Kurz's market values of debt, equity, and assets and share price after the repurchase?

  What are the operating risks of the company

What is the capital structure of the company?: Short term portion of Long Term Debt, Long Term Debt, Preferred Stock (if any), and market value of Common Stock issued and outstanding?

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