Maurice Tutor

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About Maurice Tutor

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Teaching Since: May 2017
Last Sign in: 401 Weeks Ago, 1 Day Ago
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Education

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

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 10 Aug 2017 My Price 4.00

ADB Machine Shop

Cost-Cutting Proposals. ADB Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $510 000 is estimated to result in $218 000 in annual pre-tax cost savings. ADB uses the diminishing value method for depreciation, and the rate for tax purposes is 30%. The machine press will have a salvage value at the end of the project of $64 000. The press also requires an initial investment in spare parts inventory of $21 000, along with an additional $3000 in inventory for each succeeding year of the project. If ADB's tax rate is 30% and its discount rate is 11%, should ADB buy and install the machine press?

Answers

(5)
Status NEW Posted 10 Aug 2017 10:08 PM My Price 4.00

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