Firm changed their inspection procedure

Assignment Help Financial Management
Reference no: EM13942037

An electronics firm invested $60,000 in a precision inspection device. It cost $4000 to operate and maintain in the first year and $3000 in each of the subsequent years. At the end of 4 years, the firm changed their inspection procedure, eliminating the need for the device. The purchasing agent was very fortunate in being able to sell the inspection device for $60,000, the original price. The plant manager asks you to compute the equivalent uniform annual cost of the device during the 4 years it was used. Assume interest at 8% per year.

Reference no: EM13942037

Questions Cloud

Find the income-consumption curve : Suppose Bob has a utility function u(x,y) = LN(x) + (y/4) Suppose the price of x is px = $2, the price of y is py = $1, and Bob's income is m = $8. a. Show that the marginal rate of substitution as a function of x & y is 4/x. b. Set the MRS equal to ..
How might our hospital system be different today had history : Evaluate the impact of one of the following? The development of the modern health insurance industry, Medicare and Medicaid, or the Hill-Burton Act of 1946? On the development of the hospital system. How might our hospital system be different today h..
Modern day management practices in the company : As a newly appointed General Manager of a MNC logistics company based in Asia, your boss, the Vice-President (Logistics and Facilities) would like you to explore the use of modern day management practices in the company.
Explain the benefit-based principle in taxation : Explain the benefit-based principle in taxation. Also explain how this principle is linked to the Lindhal equilibrium in local public finance choice
Firm changed their inspection procedure : An electronics firm invested $60,000 in a precision inspection device. It cost $4000 to operate and maintain in the first year and $3000 in each of the subsequent years. At the end of 4 years, the firm changed their inspection procedure, eliminating ..
Label the halfway point m : Decompose the movement from a to b into substitution and income effects. Label the "halfway point" m?
What is the future worth : What is the future worth (in Year 10) of $23,000 deposited at the end of Year 3 plus $28,000 deposited at the end of Year 5, and $20,000 deposited at the end of Year 8 at an interest rate of 10% per year?
Evidence that transformational leadership impacts : By reference to leadership principles adopted by various business leaders, critically evaluate the evidence that transformational leadership impacts positively on employee motivation and organisational culture
Current assets exceed its long-term liabilities : ratio indicates that its current assets exceed its long-term liabilities

Reviews

Write a Review

Financial Management Questions & Answers

  1 identify and explain three types of start ups firms give

1 identify and explain three types of start ups firms. give a illustration of one you have dealt with.2 what is a

  Statements about bonds is true

Which of the following statements about bonds is true? Bond prices move in the same direction as market interest rates. If market interest rates change, long-term bonds will fluctuate more in value than short-term bonds. Long-term bonds are less risk..

  What is principal outstanding after the first loan payment

John Doeber borrowed $150,000 to buy a house. His loan cost was 6% and he promised to repay the loan in 15 equal annual payments. What is the principal outstanding after the first loan payment?

  Expected return-what must the beta of this stock be

A stock has an expected return of 14.9 percent, the risk-free rate is 5.85 percent, and the market risk premium is 7.6 percent. What must the beta of this stock be? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g.,..

  Pv of perpetuity-required rate of return

(PV of perpetuity) If your required rate of return was 12% a year, how much would you pay today for $100 a month forever? (that is, the stream of $100 monthly payments goes on forever, continuing to be paid to your heirs after your death)

  Treasury bonds which pay semi-annual coupons

Consider 3 Treasury bonds which pay semi-annual coupons. Bond A has 5 years remaining to maturity and a coupon rate of 10%. Bond B has 20 years remaining to maturity and a coupon rate of 10%, and Bond C has 20 years remaining to maturity and a coupon..

  Draw policy conclusions from the barings case

Have global financial markets become safer or riskier thanks to the presence of derivative instruments? Elaborate your argument using financial and economic analysis

  Explain the accounting information for financial management

Write a 700- to 1,000-word paper identifying the specific cost accounting system an organization utilizes and how it uses the accounting information for financial management. Your paper must include the following

  Differentiate between the short run and long run

Let’s assume that you own a fast food restaurant and you are faced with many customers each day eating in the restaurant without any tables. Describe the difference between the short run and long run in the example to bringing about more tables for t..

  Assume the information for home mortgage

Assume the following information for a home mortgage: Original loan amount = $130,000 Annual interest rate = 5.75% Term of loan = 30 years. How much principal and interest was paid in year four, and what is the principal balance on the loan after fou..

  Determine the relationship of each bud­ get line to volume

Explain how each amount in the flexible budget was calculated. (Hint Examine the static budget to determine the relationship of each bud­ get line to volume.)

  Futures price of commodity-what is the value of contract

The futures price of a commodity such as corn is $1.00. The contracts are for 10,000 bushels, so a contract is worth $10,000. The margin requirement is $1,000 a contract, and the maintenance margin requirement is $600. How much must you initially rem..

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