Evaluating two different silicon wafer milling machines

Assignment Help Financial Management
Reference no: EM13895426

You are evaluating two different silicon wafer milling machines. The Techron I costs $237,000, has a three-year life, and has pretax operating costs of $62,000 per year. The Techron II costs $415,000, has a five-year life, and has pretax operating costs of $35,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $39,000. If your tax rate is 34 percent and your discount rate is 8 percent, compute the EAC for both machines.

Reference no: EM13895426

Questions Cloud

Develop the load profile for the computer assembly process : Calculate the processing load and develop the load profile for the computer assembly process. As the planner, what concerns do you have (if any)? What changes might you consider?
Develop the load profile for the stereo speaker subassembly : Calculate the processing load and available capacity, and develop the load profile for the stereo speaker subassembly. Two employees work the assembly process for 40 hours each.
Calculate the processing load and available capacity : Calculate the processing load and available capacity and develop the load profile for a dishwasher. Eight employees work the assembly process for 40 hours per week each.
Two different conveyor belt systems : BOE Manufacturing is trying to decide between two different conveyor belt systems. System A costs $272,000, has a four-year life, and requires $83,000 in pretax annual operating costs. System B costs $384,000, has a six-year life, and requires $77,00..
Evaluating two different silicon wafer milling machines : You are evaluating two different silicon wafer milling machines. The Techron I costs $237,000, has a three-year life, and has pretax operating costs of $62,000 per year If your tax rate is 34 percent and your discount rate is 8 percent, compute the E..
What role does discrimination play in perpetuating : What role does discrimination play in perpetuating the assessment of AOD problems among diverse populations
Economic life using the straight-line method : Howell Petroleum is considering a new project that complements its existing business. The machine required for the project costs $3.85 million. The marketing department predicts that sales related to the project will be $2.55 million per year for the..
Stock has correlation with the market : A stock has a correlation with the market of 0.64. The standard deviation of the market is 30%, and the standard deviation of the stock is 38%. What is the stock's beta?
Calculate the redemption value : A 700 par value 5 year 10% bond with semiannual coupons is purchased for 670.60. The present value of the redemption is 372.05. Calculate the redemption value.

Reviews

Write a Review

Financial Management Questions & Answers

  Consultancy report for anthonyrsquos orchard as your

as your project for financial and performance management you will prepare and submit a consultancy report to the

  About how much should be in the account when you close it

You deposit $1,000 in an account. You expect the account to earn 0.75% annual interest for the first six years. Then you expect the account to earn 1.03% annual interest until you close the account after 15 years. About how much should be in the acco..

  Debt ratio-payout were both changed by indicated amounts

Quinlan Electrical has quite a few positive NPV projects from which to choose. The problem is that it has more of these projects than it can finance without issuing new stock and the board of directors refuses to issue any new shares in the foreseeab..

  How the impact of inflation on the expected net cash flows

Explain what is meant by the net present value of an investment and discuss how the use of the NPV as an investment decision rule is related to the objectives of the company - Discuss the advantages and disadvantages of the use of the internal rate..

  Weighted average cost of equity

Calculate Company B’s weighted average cost of equity, given the following information: (a) Dividend: $3.50, (b) Growth Rate: 6.3% (c) Price: $22.30, (d) Debt: $12,000,000, (e) Equity: $10,000,000, and (f) Preferred Stock: $1,000,000.

  The amount available for distribution to all claimants

Duchon Industries had the following balance sheet at the time it defaulted on its interest payments and filed for liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collateral to the mortgage bondholders, brought in $900 mil..

  Determine the actual price of the bond

Suppose that a zero coupon bond selling at $ 1,000 par has a duration of four years. If interest rates increase from 6 percent to 7 percent annually, the value of the bond will fall by what amount using Equation 6.14? Use semiannual compounding. Then..

  Set out the playoffs on this portfolio on expiration date

Suppose you create a portfolio by holding 100 shares of mcdonalds stock, writing a call option on the stock with an exercise price of 55 and one year to expiration and writing a put option on the same stock with an exercise price of 25 and one year t..

  Sells protective covers for all popular smart phone brands

The Cell Phone Shop sells protective covers for all the popular smart phone brands. The company has determined that it needs a 60% mark up on retail price in order to be profitable. It believes that this mark up will satisfy the company's profit obje..

  How much should you set aside now to cover these payments

Suppose you plan to send your daughter to college in three years. You expect her to earn two-thirds of her tuition payment in scholarship money, so you estimate that your payments will be $10,000 a year for four years. To estimate whether you have se..

  What is the required return for a stock

What is the required return for a stock that has a 5.7% constant-growth rate, a price of $21.25, an expected dividend of $1.70, and a P/E ratio of 10?

  What is the value of fun toys debt and equity

Fun Toy Corporation estimates that there is 30% chance of a recession economy next year, a 40% chance of a normal economy next year, and a 30% chance of a boom economy next year. What is the value of Fun Toy’s debt? What is the value of Fun Toy’s equ..

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