9. A firm purchases a machine for $10,000. The expected life for the machine is 2 years with no salvage value. A discount rate of 10% p.a. is used. The company is looking at the option of leasing the machine out as a machine-labour system. The labour costs the firm $20 per hour. The firm also needs to charge a labour overhead rate of 50% of the labour cost in order to recover other overhead costs. It is estimated that the firm will be able to lease out the machine-labour system for 2000 hours p.a. The cost of the machine-labour system (i.e. both machine cost and labour cost) is a. $30 per hour $32.90 per hour $34.50 per hour d none of the above b. 10. A firm purchases a machine for $10,000. The expected life for the machine is 2 years with no salvage value. A discount rate of 10% p.a. is used. The company is looking at the option of leasing the machine out as a machine-labour system. The labour costs the firm $20 per hour. The firm also needs to charge a labour overhead rate of 50% of the labour cost in order to recover other overhead costs. It is estimated that the firm will be able to lease out the machine-labour system for 2000 hours p.a. If the company profit margin is 40% of the cost, the rate that the firm should charge is $42 per hour $46.06 per hour $50 per hour none of the above a. 11. A firm purchases a machine for $10,000. The expected life for the machine is 2 years with no salvage value. A discount rate of 10% p.a. is used. The company is looking at the option of leasing the machine out as a machine-labour system. The labour costs the firm $20 per hour. The firm also needs to charge a labour overhead rate of 50% of the labour cost in order to recover other overhead costs. It is estimated that the firm will be able to lease out the machine-labour system for 2000 hours p.a. If the firm leases the machine out for 2000 hours p.a. at the above rate, the annual profit is $26,320 $30,000 $35,000 none of the above a. b. C