Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problems 14 through 16 are based on the following informations The three alt n below are to be Machine A S 52,000 S 15,000 using

image text in transcribed
Problems 14 through 16 are based on the following informations The three alt n below are to be Machine A S 52,000 S 15,000 using an in trate of 12% Machine B S 63,000 $ 9,000 Machine C First Cost Annual Maintenance S 67000 S 12,000 Annual Benefit Salvage Value Useful life in years S 38,000 S 13,000 $ 31,000 S 19,000 S 37,000 S 22,000 n comparing machines A, B and C based on present worth analysis, the values of n (numb years) that should be used in the (P/A, i%, n) factor for annual costs and benefits are: 14. I a. n-4 for Machine A, n- 6 for Machine B and n- 12 for Machine C b. n-4 for Machine A, n-4 for Machine B and n-4 for Machine C c. n-8 for Machine A, n-8 for Machine B and n- 12 for Machine C d. n - 12 for Machine A, n 12 for Machine B and n 12 for Machine C 15. The relation that represents the present worth of Machine A to compare it to Machine B C in present worth analysis is: a. -52,000-15,000 (P/A, 12%, l 2) +38,000 (PA, l 2%, l 2) + 13,000[ (PF, 12%, 12%, 8)+ (PF, 12%, 12)) b. -52,000 [It(P/F, l 296, 4jt (P/F, l 2%, 8)) +23,000 (P/A, 1296, 12) + 13,000[ (P/ (P/F, 12%, 8)+ (P/F, l296, l2)] c. -52,000 +15,000 (PA, l 2%, 12). 38,000 (P/A, l 2%, 12) + 13,000[ (P/F, 12%, 1296, 8jt (PF, 12%, 12)] d. 52,000-15,000 (PA, 12%, 8) + 38,000 (PA, l 2%, 8) + 13,000[ (P/F, 12%, 4) 8)-52,000 (P/F, 12%, 4) 16. Present worth of Machine B to compare it to Machine A and Machine C is closest to: a. $55,864 b. $ 62,786 c. $46,239 d. $58,017

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

blur-text-image_2

Step: 3

blur-text-image_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

Intermediate Accounting

Authors: James D. Stice, Earl K. Stice, Fred Skousen

16th Edition

324376375, 0324375743I, 978-0324376371, 9780324375749, 978-0324312140

More Books

Students also viewed these Accounting questions