Equipment for its film adhesive assembly

Assignment Help Business Management
Reference no: EM131726567

An engineer-to-order manufacturer is considering purchasing new equipment for its film adhesive assembly. The initial cost of the equipment is $12,100 and annual maintenance costs are estimated to be $185,000 per year. Annual operating costs will be in direct proportion to the hours of use at $12 per hour. The expected annual revenue is $220,000 per year. The equipment has a salvage value of $500 at the end of 5 years. What is the maximum annual hours of use for which the equipment is economically justified? Use straight-line depreciation, an effective tax rate of 39%, and an after-tax MARR of 15% per year. (HINT: skip comma symbol)

Reference no: EM131726567

Questions Cloud

Calculate the implied annual inflation rate : Calculate the implied annual inflation rate from a market interest of 17.72% per year and a real interest rate of 15.67% per year.?
List the simple event in the sample space : Suppose that people are equally likely to have been born on any day of the week. You meet a new friend, and ask her on what day of the week she was born.
Compute the conventional b-c ratio for investment : At an interest rate of 10% per year, compute the conventional B-C ratio for this investment, with AW as the equivalent-worth measure.
Calculate the after-tax cash flow : Calculate the after-tax cash flow(ATCF) at the end of year 2 if a straight-line depreciation method is used. (HINT: skip $, comma symbols)
Equipment for its film adhesive assembly : An engineer-to-order manufacturer is considering purchasing new equipment for its film adhesive assembly.
Probability that the first friend was born on a friday : Now suppose you meet two new friends independently, and ask each of them on what day of the week they were born.
Terms of the elasticity of the demand : Rank these three items in terms of the elasticity of the demand for them at any given price, from most elastic to least elastic: hot beverages
Types of messages characterized by managerial communications : In your answer draw on the four types of messages characterized by managerial communications.
Relative price of hair cuts and wheat : What do you think has happened to the relative price of hair cuts and wheat? What do you think has happened to the relative incomes of barbers and wheat farmers

Reviews

Write a Review

Business Management Questions & Answers

  Penalties for breachoften times businesses and lawyers only

penalties for breachoften times businesses and lawyers only focus on the terms of the contract in light of each party

  Shareholder value through stakeholder responsibility

What are three of the ways in which an organization can create shareholder value through stakeholder responsibility?

  Identify the major issues and opportunities

Identify economic, legal, and regulatory forces and trends. Identify the major issues and/or opportunities that the company faces based on your analysis. Critique how well the organization adapts to change.

  Evaluate your classmates decisions based on their strengths

Constructively evaluate your classmates' decisions based on their strengths and weaknesses. Share any careers that you have come across that your classmates may be interested in based on their strengths and weaknesses.

  Absence of government interference

In the absence of government interference, what is the equilibrium price of an imported truck? The equilibrium quantity? Illustrate with a diagram.

  Analyze what type of innovation does new product represent

What type of innovation does the new product represent? Would it be possible to produce a lot of the product in a short amount of time?

  Positive diversity efforts in the workplace

Do you feel that the study helps to contribute to contemporary and progressive intents to promote positive diversity efforts in the workplace? How?

  Combination outlet-exhibit

Blue Ridge is considering admitting metalworkers to the cooperative, who will add hand-forged fireplace tools, latches, light fixtures, and iron gates to its product line. Of the following, what best describes this strategy?

  Question regarding the variable lead time

Suppose you are selecting a supplier. Would you prefer a supplier with a short but highlyvariable delivery lead time or a supplier with a longer but less variable lead time?

  What can you do with hard-core people who just won''t give up

What can you do with hard-core people who just won't give up their need to not change? Please answer in 200 words or less and cite URL or references used for class discussion

  Basic functions required for successful business management

1. Identify and briefly describe the basic functions required for successful business management.

  Privacy and the efficacy of current regulations

What are some of the principle privacy issues, or legislation about privacy and the efficacy of current regulations. Please provide reference.

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