The market value now of the particular compressor

Assignment Help Financial Management

Reference no: EM131359854

Your company owns a compressor that cost $60 000 to purchase and $10 000 to install seven years ago. The market value now of the particular compressor is $33 000 and this will decline by 12% of current value each year for the next three years. Operating and maintenance costs are estimated to be $3400 this year, and are expected to increase by $500 per year. How much should the total EAC (Equivalent Annual Cost) of a new compressor be over its economic life to justify replacing the old one sometime in the next three years? The MARK, is 10%.

Reference no: EM131359854

Questions Cloud

Why the issue is important to a business audience : An analysis of why the issue is important to a business audience that includes at least one source appropriate to the audience and concludes with at least one specific action the audience might take.

Major problems of interview as a selection device : What are the major problems of the interview as a selection device? What can HRM do to maximize fairness during the interview process?

Write an expression for the output analogue voltage : How does it differ from the simple resistive network used for the same purpose? Write an expression for the output analogue voltage for an n-bit binary ladder network.

Discuss the pros of forecasting over five to ten year period : Discuss the pros and cons of forecasting over a five to ten year period. Discuss two differences between Michigan's budget and your state budget in terms of budget process, financial reporting, and costs analysis.

The market value now of the particular compressor : Your company owns a compressor that cost $60 000 to purchase and $10 000 to install seven years ago. The market value now of the particular compressor is $33 000 and this will decline by 12% of current value each year for the next three years. How mu..

Fundamental difference between hr metrics : Explain the fundamental difference between HR metrics and workforce analytics.

Determine whether the counter is self-starting : Refer to the three-bit counter arrangement of Fig. 11.57. Determine its count sequence and also determine whether the counter is self-starting.

Different tax implications that stock redemption : Compare and contrast the different tax implications that a stock redemption has on a stockholder vs. the tax implications that the redemption has on the corporation. If possible, consider finding examples from current events (within the past 5 years)..

Benefit and compliance issue identified : Select one benefit and compliance issue identified in Module 3 and share how you feel it is a potentially risky one of which all organizations need to be aware.

User Account

All Pages