Replacement analysisstjohns river shipyards is considering, Ask an Expert

Management Studies

Replacement analysis

St.Johns River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase earnings before depreciation from $24,000 to $44,000 per year. The new machine will cost $90,000, and it will have an estimated life of 8 years and no salvage value. The new machine will be depreciated over its 5-year MACRS recovery period; so the applicable depreciation rates are 20%, 32%, 19%, 12%, 11%, and 6%. The applicable corporate tax rate is 40%, and the firm's WACC is 10%. The old machine has been fully depreciated and has no salvage value.

What is the NPV of the project? Round your answer to the nearest cent. Negative amount should be indicated by a minus sign. $

Should the old riveting machine be replaced by the new one?

-Select-Yes No

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92639398

Have any Question?Write your Review or question?

Related Questions in Operation Management

Respond to these question in essay formatoveruse of

RESPOND TO THESE QUESTION IN ESSAY FORMAT..Overuse of ambiguous terms such as it, this, and they should not be used. A. Base on the examples provided in the 1st & 2nd category BELOW, in 175-200 words elaborate/provide a ...

Interests and positions defining what is our true interest

Interests and Positions Defining what is our true interest and how it differs from our positions is not simple to achieve. But it is the crux of the conflict resolution concept. Please respond in about 150 words for each ...

Prepare a word written report describing the culture of

Prepare a word written report describing the culture of Walmart. Your analysis should consider: the fundamental type of organizational culture (see competing values framework pp.554-559) based on the way the culture impa ...

1 a plumbing company has 8 crews fielding repair calls it

1. A plumbing company has 8 crews fielding repair calls. It takes a crew 2 hours to complete one repair call (including travel time and breaks). What is the capacity of the plumbing company over the course of a 10-hour w ...

Bob richards the production manager of stella elements in

Bob Richards, the production manager of Stella Elements, in Boca Raton, Florida, is preparing his quarterly report, which is to include a productivity analysis for his department. One of the inputs is production data pre ...

1 the manager of the local deli has to quickly come up with

1. The manager of the local deli has to quickly come up with a new strategic plan to deal with multiple challenges the business is facing - new competition, a trusted supplier going out of business and no longer availabl ...

1 which of the following statements about supply chains is

1. Which of the following statement(s) about supply chains is (are) correct? A. Supply chains are relevant to manufacturing companies but not to service organizations. B. To improve supply chain performance, companies sh ...

1 please describe and comments about culture ethics and

1. Please describe and comments about Culture, Ethics and Leadership in Johnson & Johnson's home pages Please the length should be one page. 2. Synopsis of Domino’s Cultural Adjustment. 3. How can knowledge about an orga ...

1 localization strategy is focused on increasing

1. Localization strategy is focused on increasing profitability by customizing the company's goods or services so that the goods provide a favorable match to tastes and preference in different national markets. American ...

1 from the perspective of the consumer how has technology

1. From the perspective of the consumer, how has technology has changed production, manufacturing and services? How has technology affected workers, the labor market, and unemployment? 2. How have jobs, and the necessary ...

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 Operation Management Expert