Products on hydraulic stamping-press machine

Assignment Help Financial Management
Reference no: EM131912092

The Northwest Manufacturing Company is currently manufacturing one of its products on a hydraulic stamping-press machine. The unit cost of the product is $15, and 6,000 units were produced and sold for $18 each during the past year. It is expected that both the future demand of the product and the unit price will remain steady at 6,000 units per year and $18 per unit.

The old machine has a remaining useful life of three years. The old machine could be sold on the open market now for $4,600. Three years from now, the old machine is expected to have a salvage value of $1,200.

The new machine would cost $38,200, and the unit manufacturing cost on the new machine is projected to be $13. The new machine has an expected economic service life of five years and an expected salvage value of $5,700.

The appropriate MARR is 16%. The firm does not expect a significant improvement in technology, and it needs the service of either machine for an idefinite period. What is the ANNUAL EQUIVALENT WORTH of the preferred alternative? Ignore the effect of taxes and depreciation.

Reference no: EM131912092

Questions Cloud

How do you believe society would be different today : How do you believe society would be different today had all former slaves obtain and kept the land they were promised?
Choose an appropriate data analytics technique : As a supermarket manager, you need to choose an appropriate data analytics technique to support product pricing and promotion decisions.
What can healthcare organizations do to stay competitive : Flash note, no doubt you have heard about the challenge of patient safety, high cost of healthcare and programs not being funded.
Discuss any stereotypes and negative images : Determine if the information that you have learned agrees or disagrees with the myths surrounding children's awareness of human differences?
Products on hydraulic stamping-press machine : The Northwest Manufacturing Company is currently manufacturing one of its products on a hydraulic stamping-press machine.
Write a three pages essay about religion in america : Write a 3 pages essay about Religion in America with a book must be used (Julia Corbett-Hemeyer, Religion in America, 7th Edition, 2016).
Develop staffing schedule within budgetary limitations : Develops monthly staffing schedules within budgetary limitations and ensures staff coverage in case of emergent staffing issues.
Calculate best-case and worst-case npv figures : We are evaluating a project that costs $848,000, has an eight-year life, and has no salvage value. Calculate the best-case and worst-case NPV figures.
Accident in relation to a hazardous material : What is the difference between an incident and accident in relation to a hazardous material?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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