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!
Question :
Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $42,000 and a remaining useful life of 5 years at which time its salvage value will be zero. It has a current market value of $52,000. Variable manufacturing costs are $33,400 per year for this machine. Information on two alternative replacement machines follows.
Alternative A
Alternative B
Cost
$120,000
$112,000
Variable manufacturing costs per year
22,700
10,400
What the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase?
Alternative A: Increase or (Decraese) in Net Income
Cost to buy new machine
Cash received to trade in old machine
Reduction in variable manufacturing costs
Total change in net income
Alternative B: Increase or (Decraese) in Net Income
alue of discounted revenues minus discounted costs: $200 Million. A study that looked at the viability of the project has already been completed at a cost of 3M. What is the NPV of the project? Now you have to consider not only the discounted revenue..
A manufacturer has entered into American call option contract that allows it to buy 30,000 barrels of crude oil in three month at price of $185 per barrel. Crude oil is currently selling on the wholesale market at $165 per barrel and has a standard d..
Consider a mortgage pass-through security on a pool of 30 mortgages. what is the value of the security?
A stock market analyst estimates that there is a 25 percent chance the economy will be weak, a 50 percent chance the economy will be average, and a 25 percent chance the economy will be strong. On the basis of this estimate, what is the expected retu..
Describe the methods of payment for a merger or acquisition
Describe the likely importance of the difference between nominal and effective interest rates from the perspective of an individual:
A municipal bond with a coupon rate of 4.40 percent sells for $4,830 and has eight years until maturity. What is the yield to maturity of the bond?
Suppose that the firm finances the project internally by using half of cash reserve. Construct the resulting balance sheet. Do shareholders accept or reject
Acme Inc. just paid a dividend of $5 per share. Future dividends are expected to grow at a constant rate of 7% per year. What is the value of the stock if the required return is 16%?
What will be the total deduction for social security and Medicare taxes on Rony's next semi monthly pay check of $3,960, if she has already earned $42,560 this year? (Social security tax is 6.2% of gross wages up to $106,800. Medicare tax is 1.45% of..
Is business risk the same as financial risk and interest rate risk? How about real return, expected return, and profits?
According to Cheeseman (2010), “Real property is immovable or attached to immovable land or buildings; Considering the definition of real property and personal property, how would you classify each item? Present your rationale based on the difference..
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