Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Mar 19, 2024

ALUM Inc. uses high-tech equipment to produce specialized products. Each one of its machines costs $1,243,000 to purchase plus an additional $65,000 a year

image text in transcribed

ALUM Inc. uses high-tech equipment to produce specialized products. Each one of its machines costs $1,243,000 to purchase plus an additional $65,000 a year to operate. The machines have a five-year life after which they are worthless. What is the equivalent annual cost of one these machines if the required return is 14 percent?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To find the equivalent annual cost EAC of the machine we can use the concept of present value We wan... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu

6th Canadian edition

013257084X, 1846589207, 978-0132570848

More Books

Students also viewed these Finance questions

Question

Two pandas series that have the same index and are subtracted from each other. Which of the following statements are correct? 0 1 2 dtype: int64 12 24 36 1 2 dtype: int64 15 30 40 Error, series...

Answered: 1 week ago

Question

★★★★★

Let A = = (b) Let B = (c) Let C 2 33 Null(A) is a subspace of R* where k = Col(A) is a subspace of Rk where k = = 4 6 6 -5 -10 4 -7 30 7 Row (B) is a subspace of Rk where k = Null(B) is a subspace of...

Answered: 1 week ago

Question

★★★★★

When y = f(x) is mapped onto g(x), the point (4, 1) on f(x) becomes (p,q) on g(x). If g(x) = f (x + 5) - 3, then (p,q) is? 2mks

Answered: 1 week ago

Question

★★★★★

Suppose the United States imposes a tariff on imported sugar. What are the consequences of this on consumers, domestic and foreign producers, and land use?

Answered: 1 week ago

Question

★★★★★

K. B. Sayer Furnishings Inc. had the following sales and gross profit percentages for the years 2014-2017. Historically, 60% of sales are collected in the year of the sale, 25% in the following year,...

Answered: 1 week ago

Question

★★★★★

SR 9.10 Draw a UML class diagram showing an inheritance hierarchy containing classes that represent different types of food. Show some appropriate variables and method names for at least two of these...

Answered: 1 week ago

Question

★★★★★

2.64 Fuel Efficiency, continued Refer to Exercise 2.63. Construct a box plot for the data. Are there any outliers? Does this conclusion agree with your results in Exercise 2.63?

Answered: 1 week ago

Question

★★★★★

In your community, some employers maintain stable workforces at all costs, and others furlough and recall workers seemingly at the drop of a hat. What are the differences in markets, management,...

Answered: 1 week ago

Question

★★★★★

Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $255,000 in return for 50 percent of the corporations stock. Hermione contributed a building and land with the...

Answered: 1 week ago

Question

★★★★★

The open-link chain of length L and mass per unit length is released from rest in the position shown, where the bottom link is almost touching the platform and the horizontal section is supported on...

Answered: 1 week ago

Question

★★★★★

accounting for leases currently requires the lessee to capitalize

Answered: 1 week ago

Question

★★★★★

What do we call the ratio of a number of fission produced by a given generation of neutrons to the number of fission of the preceding generation? [A] Critical factor [B] Energy factor [C]...

Answered: 1 week ago

Question

★★★★★

Glycol is added to aviation gasoline because it: [A] reduces evaporation of petrol [B] increases efficiency of petrol [C] prevents freezing of petrol [D] reduces consumption of petrol

Answered: 1 week ago

Question

★★★★★

When ice cubes are made, the entropy of water: [A] does not change [B] decreases [C] increases [D] may either increase or decrease depending on the process used

Answered: 1 week ago

Question

★★★★★

In 1817, who attempted to sort elements with similar properties in a logical order into groups? [A] Emmy Noether [B] Henry Moseley [C] Dobereiner [D] Mendeleev

Answered: 1 week ago

Question

★★★★★

Sodium bicarbonate decomposes above 70 C, making it usable in bakery products. What end product of this thermal decomposition process contributes to its use in baking? [A] Hydrogen [B] Carbon Dioxide...

Answered: 1 week ago

Question

★★★★★

Q2. The Explicit Euler Formula: Let be an explicitly defined first order ODE with interval with spacing . Without loss of generality, assume that and for some positive integer values . The linear...

Answered: 1 week ago

Question

★★★★★

The ultimate goal of Google, Bing, and other consumer search engines is to provide users with search listings that contain useful information on the topic of their search. What recommendations would...

Answered: 1 week ago

Question

★★★★★

Fill in the blanks: Division % Income percentage of revenue Rate of return on invested capital 7% 3% Capital turnover 3 % 24% 20%

Answered: 1 week ago

Question

★★★★★

Manchester Machining Company (MMC) produces and sells three main product lines. The company employs a standard cost-accounting system for recordkeeping purposes. At the beginning of 2010, the...

Answered: 1 week ago

Question

★★★★★

Fill in the unknowns. Case A Case B Case C Budgeted factory overhead $3,400,000 $1,750,000 Budgeted cost drivers: Direct labour cost $2,000,000 Direct-labour-hours 450,000 Machine-hours 250,000...

Answered: 1 week ago

Question

★★★★★

In order to accumulate $500,000 after 25 years, calculate the amounts that must be invested at the end of each year, if the invested funds earn: a. 6% compounded annually. b. 7% compounded annually....

Answered: 1 week ago

Question

★★★★★

You intend to accumulate $100,000 in 10 years instead of 20 years by making equal monthly investment contributions. Will the monthly contribution for a 10-year plan be: (i) Twice the monthly...

Answered: 1 week ago

Question

★★★★★

The annual savings figures given by Macleans for age 35 and age 50 are, in fact, incorrect. What are the correct values?

Answered: 1 week ago

Previous Question Next Question