Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Vandalay Industries is considering the purchase of a brand new machine for the manufacture of latex. Machine a costs dollar 2,030,000 & will last for three years. Variable costs are 37% of sales & fixed costs are dollar 124,000 per year. Machine B costs dollar 4,470,000 & will last for five years. Variable costs for this machine are 26% of sales & fixed costs are dollar 86,000 per year. The sales for each machine will be dollar 8,940,000 per year. The required return is 10% & the tax rate is 35%. Both machines will be depreciated on a straight line basis. If the company plans to replace the machine when it wears out on a perpetual basis, the EAC for machine A is dollar ________ & the EAC for machine B is dollar _______. Therefore, you should choose machine__________. (Negative amount should be indicated by a minus sign. [Give your answer to the nearest whole dollar amount]

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M917859

Have any Question? 


Related Questions in Basic Finance

Fed facility programs during the credit crisis explain how

Fed Facility Programs during the Credit Crisis: Explain how the Fed's facility programs improved liquidity in some debt markets.

Bond pricingall bonds have some common characteristics but

Bond Pricing. All bonds have some common characteristics, but they do not always have the same contractual features. Differences in contractual provisions, and in the underlying strength of the companies backing the bond ...

The probability of an engines failing during a 30-day

The probability of an engine's failing during a 30-day acceptance test is 0.3 under adverse environmental conditions. Eight engines are included in such a test. What is the probability of (i) none will fail and (ii) more ...

Write an analysis in which you include the

Write an analysis in which you include the following: • Select two publicly traded companies within the same industry and present the DuPont analysis for each of these companies. Explain how the debt has served to influe ...

Why might a sterilized foreign exchange market intervention

Why might a sterilized foreign exchange market intervention have a greater impact on the exchange rate in times of financial stress than in times of normal market conditions?

I need someone to write my outline heshe can pick any topic

I need someone to write my outline. He/She can pick any topic from the book. Please let me know ASAP. The instructions: D. Research Paper: The research paper should discuss a topic related to fund or non-profit accountin ...

1 the probability that a manager who makes business

1. The probability that a manager who makes business transactions in a foreign language is 0.2. Ten (10) managers are chosen randomly. a) What is the probability that none make commercial transactions foreign language? b ...

For questions a and b express your answer in a number

For questions A and B, express your answer in a number between 0 and 1 with four digits of precision (i.e. 25.01% is 0.2501). For question C, express your answer in two decimal places (e.g. 1.31) A manufacturing firm has ...

Consider a put option with an exercise price of 40 on a

Consider a Put OPTION with an exercise price of $40 on a stock trading at $50 per share. For FULL credit, answer BOTH PARTS: 1 What is the Intrinsic Value of the PUT option described (this is a dollar value, not a descri ...

Conflicts of interest are a type of one of the problems

Conflicts of interest are a type of one of the problems created by asymmetric information. Describe the problem that can happen when an institution provides multiple services?

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate