What is the equivalent annual cost of the tool

Assignment Help Finance Basics
Reference no: EM13284457

Precision lathe costs $11,000 and will cost $21,000 a year to operate and maintain. If the discount rate is 12% and the lathe will last for 5 years, what is the equivalent annual cost of the tool?

Reference no: EM13284457

Questions Cloud

What was the bank franc rate of return : The borrower repaid euros at loan maturity and when the loan was repaid the exchange rate was 1.98 francs per dollar. What was the bank's franc rate of return? -2.82% 9.94% 5.71% 7.75% 11.04%
Explain the value for delta h solution at infinite dilution : Determine the value for delta H solution at infinite dilution calculated from the following delta standard H of formation
At what price is the stock selling : Favored stock will pay a dividend this year of $3.12 per share. Its dividend yield is 8%. At what price is the stock selling?
What was net annual rate of return to the nearest point : The gross annual return on the fund's shares was 9%. What was your net annual rate of return to the nearest basis point? 6.25% 4.52% 3.33% 4.64% 7.64%
What is the equivalent annual cost of the tool : Precision lathe costs $11,000 and will cost $21,000 a year to operate and maintain. If the discount rate is 12% and the lathe will last for 5 years, what is the equivalent annual cost of the tool?
Determine the molarity of obr- solution reacts : Ammonia reacts with hypobromite, OBr-, according to the equation below. Find the molarity of OBr- is 13.35mL of solution reacts with 4.66mg of NH3 (molar mass = 17.03). 2NH3 + 3OBr- ----> N2 + 3Br- + 3H2O
What is tish total 2012 depreciation deduction : How would your answer to Part a change if Tish's business taxable income (before the Sec 179 expense and 50% of SE tax deduction) were $145,000 in 2012 instead of $69,000?
Calculate how high does the ball rise : A science student is riding on a flatcar of a train traveling along a straight horizontal track at a constant speed of 12.9 m/s. How high does the ball rise
Explain what celsius temperature is equal to 150° p : A new temperature scale was invented by a scientist named Pat and is called the Patrius scale. On her scale, water froze at 35°P and boiled at 280°P. What Celsius temperature is equal to 150° P?

Reviews

Write a Review

Finance Basics Questions & Answers

  Important risks for audit of the acquisition

What are the most important risks for the audit of the acquisition and payment cycles in the automotive industry?

  Finding present value and annual payments

Calculate the present value of $90,000 to be received 14 years from now if the decision makers opportunity cost 10 percent. Find out the present value at 9 percent of each of following five cash inflow streams. Suppose that cash inflows take place ..

  How can separate taxation of corporate income be justified

Explain how corporate income could be explained under a comprehensive income tax without recourse to a corporate income tax? How can separate taxation of corporate income be justified?

  Find the nominal interest rate for a debt security

find the nominal interest rate for a debt security given the following information: real rate = 2%, liquidity premiun = 2%, defalult risk premium = 4%, maturity risk premium = 3%, and the inflation premium = 3%

  Using financial calculator to solve financial problems

Suppose your younger sister will start college in 5-years. She has just informed your parents that she wishes to go to Harvard University, which will cost $18,000 every year for four years

  Effective annual rate for investment choices

Evaluate the Effective Annual Rate (EAR) for each investment choice. (Suppose that there're 365 days in the year). Please show in Excel.

  What is the net present value for this project

The tax rate is 33 percent and the required return for the project is 15 percent. What is the net present value for this project?

  Determine the expected return of equity

Hardmon Enterprises is currently an all-equity company with an expected return of 12 percent. It is planning a leveraged recapitalization in which it would borrow and repurchase existing shares.

  What is the annual ocf for the project

If the tax rate is 40 percent, what is the annual OCF for the project?

  Calculate the expected operating cash flow

Her tax rate is 35%. Calculate the expected Operating Cash Flow [OCF] for the first year.

  Relationship between inventory turnover and purchasing needs

Discuss and explain to me the relationship between inventory turnover and purchasing needs and determine the advantage and disadvantage of level production schedules in firms with cyclical sales?

  Describe an unweighted price index

Describe an unweighted price index and describe how you would construct such an index.

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