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any help +explanation would be super beneficial. thank you!!!
The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $55,000. The machine would replace an old piece of equipment that costs $14,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use could be sold now for a salvage value of $20,000. The new machine would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense associated with the new bottling machine? 2. What is the annual incremental net operating income provided by the new bottling machine? 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return? 4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.) 1. 2. Depreciation expense Incremental net operating income Initial investment Simple rate of retur 3 4. % Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julle would receive a lump sum of $139,000 immediately as her full retirement benefit. Under the second option, she would receive $26,000 each year for 7 years plus a lump sum payment of $58.000 at the end of the 7-year period. Click here to view Exhibit 128.1 and Exhibit 128:2. to determine the appropriate discount factor(s) using tables. Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 14%. 1-b. If she can invest money at 14%, which option would you recommend that she accept? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Calculate the present value for the following assuming that the money can be invested at 14%. (Round your final answers to the nearest whole dollar amount.) Option 1 Option 2 Present value