User Account

All Pages

Replace the computer equipment

Assignment Help Electrical Engineering
Reference no: EM132524248

Holmes Inc. purchased computer equipment two years ago at a total cost of $1,000,000. These computers could be sold today for $300,000. If these computers are sold in five years, they will be worth $50,000. The CCA rate for these computers is 30%.

The company is now considering whether it should replace these computers with newer and more powerful ones. The estimated total purchase cost of the new computers is $1.5 million. These computers can be sold for $300,000 in five years, and their CCA rate remains at 30%. The company expects to obtain before-tax cost savings of $300,000 per year from these new computers.

The company's marginal tax rate is 35%, and its required rate of return on new equipment is 15%. Should the company replace the computer equipment?

Reference no: EM132524248

Questions Cloud

Calculate the ebit-depreciation-changes in nwc : We find the following information on NPNG (No-Pain-No-Gain) Inc.:
Investment according to the exact fisher formula : If the inflation rate was 3% over the past year, what would be your total real return on investment according to the Exact Fisher Formula?
MN621 Advanced Network Design Assignment : MN621 Advanced Network Design Assignment Help and Solution, Melbourne Institute of Technology - Assessment Writing Service - Network analysis and recommendation
Solve the predetermined overhead rate : If Spruce Inc. uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?
Replace the computer equipment : The company's marginal tax rate is 35%, and its required rate of return on new equipment is 15%. Should the company replace the computer equipment?
Compute the January cost of ending inventory : Compute the January 31 cost of ending inventory and cost of goods sold for January, assuming Denver uses LIFO under a periodic system
What the gordon should : Gordon's production manager reports that the defects can be corrected for $5 per unit, enabling them to be sold at regular market price of $12.50. Gordon should
Prepare journal entries to record the purchases and sales : Prepare journal entries to record the purchases and sales assuming Bascomb uses a perpetual inventory system
Law ethics and corp governance : Discuss the benefits and costs of voluntarily prohibiting a form of discrimination not covered by any of the federal anti-discrimination laws.

Reviews

Write a Review

Electrical Engineering Questions & Answers

  Lithium ion battery technology

The paper includes Lithium ion battery technology with its advantages and disadvantages. The paper discusses about the Lithium air battery in which detailed reactions of Lithium with air including nonaqueous as well as aqueous are given.

  Power transformers and tariffs

Construction of different types of power transformer, significant energy savings

  Paper on orthogonal frequency-division multiplexing

This document is shown a paper on Orthogonal frequency-division multiplexing with advantages, disadvantages and uses.

  Function of the hmi in a scada system

This assignment contains electronics engineering questions like State the commonly found components of a SCADA (Supervisory control and data acquisition) system. and decribe the function of the HMI in a SCADA system.

  Resultant waveform of the odd harmonic series

Prepare an Excel graph showing the individual components and summated resultant waveform of the odd harmonic series resulting in an approximate square wave.

  Explain scada system

Explain the function of the HMI in a SCADA system.

  Design a 2-digit 24 second shot-clock

Design a 2-digit 24 second "shot-clock" countdown timer with pushbutton controller.

  Model a discrete-time system

To understand di erent signal models To be able to model a discrete-time system and design simple signal processing algorithms.

  Draw a relay construction diagram

Draw a relay construction diagram and briefly explain the operation of a relay.

  Frequency division multiplexing

Write a short technical report on Frequency Division Multiplexing

  Impact of electron energy

Briefly discuss the impact of electron energy, electron current and target on the Bremsstrahlung generated.

  Traffic light controller

The schematic of the traffic light controller

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd