Which track hoe should your company choose

Assignment Help Finance Basics
Reference no: EM131138606

Determine the incremental net present value for Problem 8. Which track hoe should your company choose?
In Problem 8, Your company needs to purchase a new track hoe and has narrowed the selection to two pieces of equipment. The first track hoe costs $100,000 and has an hourly operation cost of $31.00 and a $35,000 salvage value at the end of three years. The second track hoe costs $65,000 and has an hourly operation cost of $36.00 and no salvage value at the end of three years. The operator cost is $29.00 per hour. The revenue from either track hoe is $95.00 per hour. Using 1,200 billable hours per year and a MARR of 20%, calculate the NPV for both track hoes. Which track hoe should your company choose?

Reference no: EM131138606

Questions Cloud

Difference book value accounting and market value accounting : 1. What is the difference between book value accounting and market value accounting? How do interest rate changes affect the value of bank assets and liabilities under the two methods? What is marking to market?2. What are the two different general i..
Determine should your company purchase the dump truck : The dump truck could be billed out at $55.00 per hour and costs $13.00 per hour to operate. The operator costs $22.00 per hour. Using 1,000 billable hours per year determine the net present value for the purchase of the dump truck using a MARR of 18%..
What is the effect of a stock dividend on the balance sheet : What is the effect of a stock dividend on the balance sheet? In computing the rate earned on total assets, interest expense is added to net income before dividing by average total assets.
The t accounts below summarize the ledger : Prepare the complete general journal (including explanations) from which the postings to Cash were made.
Which track hoe should your company choose : The operator cost is $29.00 per hour. The revenue from either track hoe is $95.00 per hour. Using 1,200 billable hours per year and a MARR of 20%, calculate the NPV for both track hoes. Which track hoe should your company choose?
Accurate reflection of corporate americas modus operands : Corporate America has been accused of spending the last 30 years seeking out ways to reduce, or increase the efficiencies of its, labor force resource requirements.
Selected transactions from the journal of teresa gonzalez : Selected transactions from the journal of Teresa Gonzalez, investment broker, are presented below.
Determine the embedment depth : Assume the soil above the groundwater to be saturated.
Which is not one of the four basic financial statements : Which of the following is not one of the four basic financial statements? When services are rendered but payment is not made, which account would be increased?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the current ratio and working capital based on

the chief financial officer cfo of padilla corporation requested that the accounting department prepare a preliminary

  Arranged for a loan on your new car

You have arranged for a loan on your new car that will require the first payment today. The loan is for $39,500, and the monthly payments are $700.

  Calculate the npv and irr for each type of truck

Annual net cash flows include depreciation expenses. Calculate the NPV and IRR for each type of truck, and decide which to recommend.

  Does this mean the market risk premium we should use in the

From the start of 1999 to the start of 2009, the S&P 500 had a negative return. Does this mean the market risk premium we should use in the CAPM is negative?

  Compute the mean and standard deviation of the returns

Estimate the Optimal Portfolio. Use the current value of the 6 month T-bill as a proxy for the risk free rate. Find the expected return and variance for this portfolio.

  What is the estimated beta coefficient of your company

Do you feel that the three-stock portfolio is sufficiently diversified or does it still have risk that can be diversified away? Explain.

  Whose cost of capital is 10% is considering a projects x

Andrew Inc. whose cost of capital is 10% is considering a projects X, the details of which are:

  What problems may be indicated by an inventory turnover

What problems may be indicated by an inventory turnover ratio that is substantially above or below the industry average?

  Challenges inherent in financial statement analysis

Consider a healthcare organization with which you are familiar in the United States and discuss what are some of the problems or challenges inherent in financial statement analysis?

  What is the price-earnings ratio

A company has $5,800 in sales. The profit margin is 4%. There are 5,000 shares of stock outstanding. The market price per share is $1.70. What is the price-earnings ratio?

  A firm with a 14 wacc is evaluating two projects for this

a firm with a 14 wacc is evaluating two projects for this years capital budget. after tax cash flows including

  What is the expected net gain

Should she expect to break even by playing this way since the payoff is 1:1? Does she have a 50/50 chance of winning each time the wheel is spun? What is the expected net gain? Explain.

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