Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 402 Weeks Ago, 5 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 25 Sep 2017 My Price 6.00

Custom Driveways

Custom Driveways provides custom paving of sidewalks and driveways for residential and commercial customers. One of the most labor-intensive aspects of the paving operation is the preparation an mixing of materials. Joe Click, corporate engineer, has learned of a new computerize technology to mix (and monitor mixing of) materials. According to information received by Mr. Click, the cost of the required equipment would be $280,000, and the equipment would have an expected life of seven years. If purchased, the new equipment would replace manually operated equipment. Data relating to the old and new mixing equipment follow:

 

OLD TECHNOLOGY

Original cost

$25,000

Present book value

$15,000

Annual cash operating costs

$75,000

Current market value

$6,000

Market value in 7 years

$0

Remaining useful life

7 years
 

NEW TECHNOLOGY

Cost

$280,000

Annual cash operating costs

$15,000

Market value in 7 years

$0

Useful life

7 years

a. Assume that the cost of capital in this company is 12 percent, which is the rate to be used in a discounted cash flow analysis. Compute the net present value and profitability index of investing in the new machine. Ignore taxes. Should the machine be purchased? Why or why not?

b. Compute the payback period for the investment in the new machine. Ignore taxes.

c. Rounding to the nearest whole percentage, compute the internal rate of return for the machine investment.

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Sep 2017 10:09 PM My Price 6.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll

Not Rated(0)