What is the equivalent annual cost of owning

Assignment Help Financial Management

Reference no: EM131972297

A machine costs 7500 and is expected to incur annual electricity cost of 1500. the annual maintenance costs are estimated to be 1000. at the end of every two years, an overhaul costing 6000 is needed. no overhaul is done at the end of the 10 year life of the machine, when the market value of the machine is estimated to be 1500.

if the cost of money is 8% per year compounded yearly, what is the equivalent annual cost of owning and operating this machine?

Reference no: EM131972297

Questions Cloud

Determine what was in-scope and out-of-scope for the project : Describe why you chose your selection and what key details make it a good project to analyze. - Identify two to three external resources to begin your research

Several managers and employees from the cost accounting : A new product is being designed by an engineering team. Several managers and employees from the cost accounting department and the marketing department

Prepare financial statements for the month : Salem Company started its operations on January 1, 2016. Prepare financial statements for the month. Post to the appropriate ledger accounts.

What is a fair value for stock today : The leading P/E ratio is expected to increase up to 20 in two years. If the required rate of return is 10%, what is a fair value for this stock today?

What is the equivalent annual cost of owning : If the cost of money is 8% per year compounded yearly, what is the equivalent annual cost of owning and operating this machine?

Estimate of the stock price today : What would be an appropriate estimate of the stock price today? (Answer to the nearest penny, i.e. 55.55 but do not use a $ sign).

Prepare a sales budget by product and in total for alger inc : Prepare a sales budget by product and in total for Alger Inc. for the coming year. Do not include a multiplication symbol as part of your answer.

What is the debt-equity ratio : The company also has 3.6 million shares that sell for $20 per share. What is the debt-equity ratio for this company based on market values?

What level of sales could mitchell have obtained : What level of sales could Mitchell have obtained if it had been operating at full capacity? Round your answer to the nearest dollar.

User Account

All Pages