What was the annual equivalent cost of the machine

Assignment Help Finance Basics
Reference no: EM13305912

A new machine was bought for $9,000 with a life of six years and no salvage value. It's operating costs are $7,000 the first year and increases by 5% for each of the following years. If the MARR = 12%, what was the annual equivalent cost of the machine?

Reference no: EM13305912

Questions Cloud

Establish and sketch the energy equation for the scenario : write solution in a organized and easy to follow matter. Will rate life saver for diagram or picture.Water leaves a treatment plant in a 500-mm diameter ductile iron pipeline at a pressure of 600 kPa
Determine the volume of the aluminum : A piece of aluminum with a mass of 1kg and density of 2700 kg/m^3 is suspended from a string and then completely immersed in a container of water. Determine the volume of the aluminum
How personally evaluate leadership effectiveness : Bring to mind specific instances in which a leader has had a powerful impact on you. These leadership examples may be ones that you consider unsuccessful, as well as those that you consider successful; they may be from within the health care industry..
Calculate temp of interface between steel and isulation : A stainless steel pipe (k= 17 W/m?C) is being used to convey heated oil. The inside surface temperature is 130?C. The pipe is 2 cm thick with an inside diameter of 8 cm. The pipe is insulated with 0.04 m thick insulation
What was the annual equivalent cost of the machine : It's operating costs are $7,000 the first year and increases by 5% for each of the following years. If the MARR = 12%, what was the annual equivalent cost of the machine?
Which will cause reaction at the bearing to be equal to zero : Determine the magnitude of which will cause the reaction at the bearing to be equal to zero. The bearings are in proper alignment and exert only force reactions on the rod. Set = 600 .
Grunig and hunt model of four types of public relations prac : Write an essay in which you discuss theGrunig and Hunt model of four types of public relations practice
What would the cost of that capital be : A company's perpetual preferred stockcurrently trades at $80 per share and pays a $6.00 annual dividendper share. If the company were to sell a new preferred issue,it would incur a flotation cost of 4%. What would the cost of that capital be?
Determine the magnitude of f2 which will cause the reaction : Determine the magnitude of F2 which will cause the reaction Cy at the bearing C to beequal to zero. The bearings are in proper alignment and exertonly force reactions on the rod. Set F1 = 550 lb.

Reviews

Write a Review

Finance Basics Questions & Answers

  For what reasons should the percentage of completion method

For what reasons should the percentage of completion method be used over the completed contract method whenever possible?

  What is the current stock price

A stock just paid a dividend of $1.2. The required rate of return is 11.5%, and the constant growth rate is 3.6%. What is the current stock price.

  Calculate the standard deviation of expected returns

Calculate the standard deviation of expected returns, ?X, for Stock X (?Y = 19.83%.) Round your answer to two decimal places.

  What would be the new per share value

If the company goes beyond 30 percent debt, its bonds would carry a lower rating and a much higher coupon because the possibility of financial distress and the associated costs would rise sharply. Volcan has a 40 percent corporate tax rate.

  What are the elements of the capital budgeting process

What are the elements of the capital budgeting process? How would you conduct a capital budgeting analysis for a global project?

  Determine the compound annual rate of growth

How do I use the Future Value of $1 table to determine the compound annual rate of growth in earnings (n=6)?

  How much additional money must he deposit

How much additional money must he deposit if he waits for one year rather than making the deposit today?

  What is the breakeven point in sales dollars for win

What is the breakeven point in sales dollars for Win?

  How much free cash flow did the firm generate during 2009

Net income = $825; after-tax operating income [EBIT (1-T)] = $925; EBITDA=1,700; Gross fixed assets = $2,500; and Net operating working capital (NOWC) = 350. Tax rate is 40%. How much free cash flow did the firm generate during 2009?

  What additional costs will be charged to this customer

The firm had two consultations with this client and required 130 administrative labor hours. What additional costs will be charged to this customer?

  Calculate the eoq

It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days%u2019 usage in inventory as a safety stock.

  What is the profit on the activity

what arbitrage opportunity is available for an investment banking firm? what is the profit on the activity?

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