Which machine should bruno purchase and why

Assignment Help Finance Basics
Reference no: EM13279303

Bruno's, Inc. is analyzing two machines to determine which one it should purchase. The company requires a 14% rate of return and uses straight-line depreciation to a zero book value. Machine A has a cost of $290,000, annual operating costs of $8,000, and a 3-year life. Machine B costs $180,000, has annual operating costs of $12,000, and has a 2-year life. Whichever machine is purchased will be replaced at the end of its useful life. Which machine should Bruno's purchase and why?

Reference no: EM13279303

Questions Cloud

What is the torque on the rotor when 1 a flows through coil : A hypothetical starting motor in an automobile has an armature 20 cm long, diameter 10 cm and has slots 0.5 cm deep filled with windings. The radial field is provided by coils in the stator to obtain a flux denisty of 0.2 Wb/m^2
The radius of a star-surface temperature : The radius of a star that has a surface temperature of 28900k and is 10000 ties brighter than the sun is___Rsun? I was told that the answer is 4.027 Rsun but im not sure how to get the answer
Determine the weight of the truck : A small ferryboat is 4.00 m wide and 6.00 m long. When a loaded truck pulls onto it, What is the weight of the truck
Evaluate the number of gold atoms in a unit cell : Gold has cubic crystals whose unit cell has an edge length of 407.9 pm. The density of the metal is 19.3 g/cm3. Calculate the number of gold atoms in a unit cell. What type of cubi lattice does gold have
Which machine should bruno purchase and why : Whichever machine is purchased will be replaced at the end of its useful life. Which machine should Bruno's purchase and why?
Find leakage resistance on the primary and secondary sides : The resistance readings collected after the open and short circuit tests are the resistance reading when the transformer is operating with DC. Supposedly, the resistance collected should be the same as the leakage resistance, distributed with the ..
Explain how many grams of h2so4 are required : If 20.g of NaCl are used, how many grams of H2SO4 are required for complete reaction? Using the balance equation 2NaCl(s)+ 1H2SO4(aq)= 2HCl(aq)+ 1Na2SO4
From what height was the ball thrown : A ball is thrown from a window with Vo=2m.s at an angle of 53 degrees ABOVE the horizontal. From what height was the ball thrown
Explain an aqueous solution of phosphoric acid : Write a balanced (a) molecular, (b) overall ionic, and (c) net ionic equation for the reaction between an aqueous solution of phosphoric acid, H3PO4 (aq) , and an aqueous solution of sodium hydroxide. The products are sodium phosphate and water

Reviews

Write a Review

Finance Basics Questions & Answers

  Xyz corporation-yield to maturity

XYZ Corporation issued $500 million in debentures in 2002 at par. The debentures carry a coupon rate of 3.5% and mature on 12/15/2020.

  What is the equilibrium price of the stock

If your estimate of the company's required rate of return on its stock is 10%, what is the equilibrium price of the stock?

  Find liabilities to assets ratio and debt to assets ratio

Assume you are given the following information: Sales/Total Assets = 1.5, ROA =2% abd ROE = 9%; calculate liabilities to assets ratio and debt to assets ratio.

  What is your total return for last year

You bought a share of 7.00 percent preferred stock for $99.68 last year. The market price for your stock is now $105.42.

  Determine the cost of equity capital for the firm

The Allegheny Valley Power Company common stock has a beta of 0.80. If the current risk-free rate is 6.5% and the expected return on the stock market as a whole is 16%, determine the cost of equity capital for the firm (using the CAPM).

  Computation the amount interest earned during the sixth year

Future value of today investment at a perticular interest over a period of years? Computation the amount interest earned during the sixth year

  What is the weighted average contribution margin

Lambardi sells in a mix of 2 units of A, 3 units of B and 5 units of C. What is the weighted average contribution margin per unit for Lambardi?

  What was last years dividend per share

Fauver Enterprises declard a 4 for 1 stock split last year, andthis year its dividend is $1.10 per share. This total dividend payout represents a 6% increase overlast year's pre-split dividend payout. What was last year's dividend per share? Round..

  What percentage increase in the ms will be necessary

Assume that the VM will turn over 4 times next year if the country wants a GDP of $22 billion at the end of next year, what will have to be the size of the money supply? What percentage increase in the MS will be necessary to achieve the target GDP?

  What is the yield on a 5-year treasury note

The real risk free rate is 1.5%. Inflation is expected to be 2% for this year and next year, and 3% for every year thereafter. The maturity risk premium is expected to be 0.02 x (t-1)% where t = number of years to maturity. What is the yield on a ..

  Describe a bearish pattern with the two ma lines

Assuming a stock price and volume chart that also contains a 50-day and a 200-day MA line, describe a bearish pattern with the two MA lines and discuss why it is bearish.

  How much is the expected total variable cost

Materials and labor are the only variable costs. If production and sales are budgeted to increase to 150 chairs in August, how much is the expected total variable cost on the August budget?

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