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Outono One year age, your company purchased a machine sed in manufacturing for $100.000 You are at ww machines we that offers many advantages and

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Outono One year age, your company purchased a machine sed in manufacturing for $100.000 You are at ww machines we that offers many advantages and that you can purchase to 100.000 today the CCA both machines is 20 hore we have any long term salvague. You expect that the new machine will produce canings before interest to depreciation and in EBITDA) 45,000 per year for the end on years. The current machine is expected to produce EBITDA of $22.000 per you. Al other expenses of the two machines were the main today of the current machine is $50,000 Your company's and the contra cost of crotal for this type of equipment is 12% Should your company replace to year old machine? What is the price The ofrecement Pound to the new got Enter your weinwer bound the Check Aww. Problem 9-13 Question in One wear ago your conchased a machine storing for $100.000 You were the new machine in vabatur mary avantages and that you can purchase it for $100.000 today The CCA rate applicable to bother machine with my namalge value You espect that the machine will produce aming before the depender of $45,000 per year for the eyes. The current machine per te produce TO 122.000 per year. As or person of the two machines are des Themare ale loday of the current machine is $50,000 Your comparais 35%and the opportuny MO of this type of comment is 12 Should your company replace a year-old mache What the NPV ocement The ofrecement fund te them Problem 9-13 stion Help One year ago your company purchased a machine cred in manufacturing for 100.000 You wamed that a new machine is available that offers many advantages and that you can purchase for $160,000 today. The CCA aplicable to both machines a 20%; neither machine with any long-term savage value. You expect that the new machine will produce aming before interest, tas, depreciation, and amortization (EBITDA) of 545.000 per year for the next dan years. The current machines expected to produce EBITDA of 532.000 per year. All other pers of the two machines are identical. The name value today of the current machine is $50,000. Your company's tax rate is 35 and the opportunity cost capital for this we of equat a 12 Show your company receber-old mache? What is the NPV of replacement? The NPV of replacement Round the nearest dobar Enter your in the word to Check www. 1 ano CA 2020 10318 74 4:09 One year ago, your company purchased a machine used in manufacturing for $100,000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $160,000 today. The CCA rate applicable to both machines is 20%; neither machine will have any long-term salvage value. You expect that the new machine will produce earnings before interest, taxes, depreciation, and amortization (EBITDA) of $45,000 per year for the next ten years. The current machine is expected to produce EBITDA of $22,000 per year. All other expenses of the two machines are identical. The market value today of the current machine is $50,000. Your company's tax rate is 35%, and the opportunity cost of capital for this type of equipment is 12%. Should your company replace its year-old machine? What is the NPV of replacement? The NPV of replacement is $nothing (Round to the nearest dollar.)

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