Equipment purchased 2 years ago for 70000 was expected to, Ask an Expert

Economics

Equipment purchased 2 years ago for $70,000 was expected to have a useful life of 5 years with a $5,000 salvage value. Its performance was less tha expected and it was upgraded for $30,000 one year ago. Increased demand now requires that the equipment be upgraded again for an additional $25,000 or replaced with new equipment that will cost $85,000. If replaced the existing equipment will be sold for $6,000. In conducting a replacement study, the first cost that should be used for the presently owned machine is:

a. $31,000

b. $25,000

c. $6,000

d. $22,000

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91404609

Have any Question?Write your Review or question?

Related Questions in Business Economics

Some residents of the village of taugswater have proposed

Some residents of the village of Taugswater have proposed purchasing logging permits relating to a nearby wilderness area. The majority of residents agree that the purchase of permits, to be set aside and not used, is th ...

If you are tossing a fair coin 10 times what is the

If you are tossing a fair coin 10 times, what is the probability of getting exactly 9 heads out of the 10 coin tosses?

The blood glucose levels of wistar rats measured 2 hours

The blood glucose levels of Wistar rats measured 2 hours after eating (Postprandial Blood Glucose - PBG) are approximately normally distributed with mean 5.65 mmol/L and standard deviation 1.63 mmol/L. If a Wistar rat is ...

In what kind of economy is a central planning board or

In what kind of economy is a central planning board or commission typically used to answer the basic economic questions?

A random sample of 15 drivers from montana and finds that

A random sample of 15 drivers from Montana and finds that they drive an average of 12,895 miles annually with a standard deviation of 3801 miles. Find the 96% confidence interval for the population mean of miles driven. ...

From a random sample of 41 teens it is found that on

From a random sample of 41 teens, it is found that on average they spend 31.8 hours each week online with a standard deviation of 3.65 hours. What is the 90% confidence interval for the amount of time they spend online e ...

A coin is randomly picked from a collection of 10 coins the

A coin is randomly picked from a collection of 10 coins, the ith coin having a probabiliity i/10 of coming up heads. The coin in then flipped repeatedly until a head appears. Let X be the number of flips necessary. Find ...

If the united were to become more aggressive in trying to

If the United were to become more aggressive in trying to control global thermal warming would this cause extensive economic problems?

What is bitcoin and why does it have value is bitcoin money

What is Bitcoin and why does it have value? Is Bitcoin money? Explain why it does or does not satisfy the three conditions it must meet to be considered money.

You are given the sample mean and the population standard

You are given the sample mean and the population standard deviation. Use this information to construct the 90% and 95% confidence intervals for the population mean. A random sample of 44 gas grills has a mean price of ...

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

Recent Questions

Ask Business Economics Expert