Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Problem-
A machine for shaping corkscrews tends to break down more often as it ages, producing less cork screws for sale, and costing more to maintain. What is the optimal replacement strategy for the machine given the following data:
Cost of new machine
$300
Age of machine (years)
1
2
3
Revenue ($)
340
280
200
Maintenance ($)
40
50
60
Scrap Value ($)
170
130
For tax purposes the corkscrew machine will be depreciated straight line over three years regardless of the replacement strategy adopted.
The tax rate is 30% and investors cannot claim franking credits. The corkscrew manufacturer requires a 10% pa. after tax return on investments.
Additional information-
The given problem belongs to Finance and discuss about optimal replacement strategy for a machine making corkscrews keeping in mind the tax rate.
I have to prepare a paper in which I describe the roles of limited liability partnerships and corporations. If you were establishing your own business, under what situations would you choose one from the other?
If the plant has projected net income of $1,735,000, $2,105,000, $1,954,000, and $1,286,000 over these four years, what is the project's average accounting return (AAR)?
A $1,000, 7% annual coupon bond matures in three years. The bond is currently priced at $974.23 and has a YTM of 8.0%. What is the Macaulay duration?
As Pharma Heal Corporation has grown successful, so have Akosua and Isabella. With record sales this past year (thanks to the help of its international business consultant), Isabella realized the substantial income from a variety of sources in sev..
(Monthly compounding) If you bought a $1,000 face value CD which matured in nine months, and which was advertised as paying 9% annual interest, compounded monthly, how much would you receive if you cashed in your CD at maturity?
Wal-Mart and Levi Strauss collaborate on demand forecasting in order to optimize the flow of materials along the supply chain. This is an example of:
we are evaluating a project that costs 1.68 million has a 5-year life and has no salvage value. assume depreciation is
ABC company had a taxable income of $196,664 from operations after all operating costs but before interest charges of $56,991, dividends received of $61,067, dividends paid of $5,000, and income taxes. What is the firm's income tax liability?
1. a) What would be the expected price of each bond one year from now if interest rates were 8 percent? b) What would be the expected price two years from now if interest rates initially fall but subsequently rise to 12 percent at the end of the s..
Which of the following is correct? A) the cash flows of an ordinary annuity all occur at the beginning of the periods b) if a series of unequal cash flows occurs at regular intervals, such as once a year, the the series is by definition an annuity ..
I need your help with my presentation we are comparing two business and I am doing ADP Automatic Data processing. It is an independent calculating firm and it start as a manual processing service for business in northern new Jersey.
it is is true that Vertical integration involves the acquisition of competitors and Synergy is a common motive for mergers
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd