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Question 33 is the only you have to do nevermind answers both question Question 31 1 pts You are considering two machines, A and B

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Question 33 is the only you have to do image text in transcribed
nevermind answers both question
Question 31 1 pts You are considering two machines, A and B that can be used for the same purpose. Machine A costs $250,000, will reduce costs by $70,000 per year, needs net working capital of $20,000 at time zero which be released at the end of the project, has a 5 year straight line depreciable life and can be sold at the end of the project's life for $50,000. Machine B costs $320,000, will reduce costs by the same $70,000 per year, has net working capital of $40,000 at time zero (also released at the end of its life). has a ten year straight line depreciable life and can be sold at the end of its life for $60,000. Assume that the tax rate is 38% and the discount rate is 10%. What are the after tax salvage values for project A and B at the end of their lives? Don't include the annual operating cash flows in this calculation, just the salvage value plus or minus any tax benefit or liability. $31,000 for A and $37.200 for B $50,000 for A and $60,000 for B O $40,000 for A and $50,000 for B $23.000 for A and $43.100 for B $33,000 for A and $39,600 for B o D Question 33 1 pts Ti AL 1 2 You are considering two machines, A and B that can be used for the same purpose. Machine A costs $250,000, will reduce costs by $70.000 per year, needs net working capital of $20,000 at time zero which be released at the end of the project has a 5 year straight line depreciable life and can be sold at the end of the project's life for $50,000. Machine B costs $320,000, will reduce costs by the same $70,000 per year, has net working capital of $40,000 at time zero falso released at the end of its life). has a ten year straight line depreciable life and can be sold at the end of its life for $60.000. Assume that the tax rate is 38% and the discount rate is 10%. Calculate an Equivalent Annual Cost for each machine. What are they and which machine should you choose? O $234,4 for A and $4.233.4 for B. choose B $7.909.22 for A and $1.705.22 for B. choose A $655.95 for A and $3,486 19 for B, choose B -$471.65 for A and $1,815.6 for 8, choose B O $1,705 84 for Aand $7.909 22 for 8, choose B 1 pts Question 33 You are considering two machines, A and B that can be used for the same purpose. Machine A costs $250,000, will reduce costs by $70,000 per year, needs net working capital of $20,000 at time zero which be released at the end of the project, has a 5 year straight line depreciable life and can be sold at the end of the project's life for $50,000. Machine B costs $320,000, will reduce costs by the same $70,000 per year, has net working capital of $40,000 at time zero (also released at the end of its life), has a ten year straight line depreciable life and can be sold at the end of its life for $60,000. Assume that the tax rate is 38% and the discount rate is 10%. Calculate an Equivalent Annual Cost for each machine. What are they and which machine should you choose? $234.4 for A and $4,233.4 for B. choose B $7,909 22 for A and $1,705.22 for B, choose A O $655.95 for A and $3,486.19 for B. choose B O -$471.65 for A and $1.815.6 for B. choose B $1,705.84 for A and $7,909.22 for B, choose B

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