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Question 1 2 marks You are trying to decide whether you wish to buy a machine which will cost $100,000 and will last 8 years
Question 1 2 marks You are trying to decide whether you wish to buy a machine which will cost $100,000 and will last 8 years This machine will have a zero scrap value and will reduce your labour hours by 20,000 hours/year. The average labour cost is $20/hour. You would like a minimum return of 10%. Should this machine by purchased? Calculation:
| Question 1 | 2 marks |
| You are trying to decide whether you wish to buy a machine which will cost $100,000 and will last 8 years | |
| This machine will have a zero scrap value and will reduce your labour hours by 20,000 hours/year. | |
| The average labour cost is $20/hour. You would like a minimum return of 10%. | |
| Should this machine by purchased? | |
| Calculation: | |
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
15th edition
1259404781, 007802563X, 978-1259404788, 9780078025631, 978-0077522940
