Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) You are estimating 2 various silicon wafer milling machines. Techron I costs= $228,000, has a 3-year life, and has pretax operating costs of= $59,000 per year. Techron II costs= $400,000, has a 5-year life, and has pretax operating costs of= $32,000 per year. For both milling machines, utilize straight-line depreciation to zero over project’s life and suppose a salvage value of= $36,000. If your tax rate is 34% and your discount rate is 8%, find out the EAC for both machines.

2) Lang Industrial Systems Company (LISC) is trying to make a decision between 2 different conveyor belt systems. System X costs= $280,000, has a 4-year life, and needs $85,000 in pretax annual operating costs. System Y costs= $396,000, has a 6-year life, and needs= $79,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have 0 salvage value. Any project is selected; it won’t be replaced when it wears out. Tax rate is 35% and discount rate is 9%.

Compute the NPV for both conveyor belt systems. Which conveyor belt system must the firm select?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915320

Have any Question? 


Related Questions in Basic Finance

1 what is the yield to maturity for an 8 percent bond

1. What is the yield to maturity for an 8 percent bond, paying coupon semi-annually that has 15 years until maturity and sells for $975? 2. There are regulations that prohibit "insider trading," which is the use of nonpu ...

1 define security interest and how it has been used in real

1. Define security interest and how it has been used in real estate finance since the Industrial Revolution. 2. What is meant by the term collateral? By hypothecation? 3. What is the purpose of a promissory note? Of a mo ...

Identify general-purpose statements and communication

Identify general-purpose statements and communication objectives for several situations. Read the following situations and write a general-purpose statement and a specific communication objective-the results you want-for ...

Explain why a call option with zero exercise price is

Explain why a call option with zero exercise price is equivalent to the underlying stock, assuming no dividends on the stock during the life of the option? Why might two calls or puts alike in all respects but time to ex ...

1 comment on the following statement a key benefit of

1. Comment on the following statement: A key benefit of leasing is that it allows for the effective depreciation of land. 2. How would the availability of floating-rate debt rather than fixed-rate debt affect the lease-v ...

As mentioned in the chapter during early 2010 investors

As mentioned in the chapter, during early 2010, investors began to worry that the government of Greece might default on its bonds. The rating agencies downgraded Greek bonds several times. Following one of the rating dow ...

Discussionresearch a company with an international presence

Discussion Research a company with an international presence. Describe the type of work performed; measures that the company's industry area uses for productivity; and the pitfalls and promise that the metrics provide. W ...

1 explain how uncertainty concerning future interest rates

1. Explain how uncertainty concerning future interest rates would affect the decision to refund a bond issue. 2. Define the following: direct lease, sale-leaseback arrangement, leveraged lease, and financial (capital) le ...

Consider a world of perfect capital marketsnbsp this world

Consider a world of perfect capital markets.  This world has no corporate or personal taxes, all investors have homogeneous expectations, no bankruptcy costs, and M&M's no-tax theory of capital structure is true. Company ...

Backgroundthe facebook group announced that it raised

Background The Facebook group announced that it raised between $10 million to $12 million in first-round financing led by Accel Partners on April 15, 2005. As a part of the transaction, Jim Beyers, a Managing Partner at ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen