Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

replacement analysis The Bee Botting Coroany is concompleting the replacement of one of its botting machines with a newer and trorealet one. The old machine

replacement analysis
image text in transcribed
The Bee Botting Coroany is concompleting the replacement of one of its botting machines with a newer and trorealet one. The old machine was purchased prior to the TCA, book value of $625,000, and arraning ife of years. The does not expect to post any return from scrapping the old machine in 5 years, tout it can state femin the holy for $25,000. The old machine is being deprecated by $125.000 per year using the staghlimate The new machine on phase price of $1,200,000, an estimate fe of years, and an estimated lege value of $140,000. The new mathie e dine for 100% se time of purchase. It is expected to content on tarwerage, aber are reparos will as to reduce the number of defective boties. In total, malgs before awes at $230,000 will be more the new machine is noted. The company's marginal tax and it has a 125 ACC. What artis required for the new machine after botas depreciations concret Cash outlow should be indicated by a windsugn. Round your answer to the nearest doar $ b. Calelete the change in the wall depreciation exerse the placement is made. Negative change it. If thoud de indicated by a muswa hovne your answers to the rest on Year Change in Depreciation 1 1 2 3 4 $ Where normecah in 1 through 57 Round your answers to the rest Ver 1 Year 2 Years Year 4 Years Sumut the new machine I real how the the following tidorest them on and how should te treted The speed of the machine The new macht that before due to the relative the cash flows atirabi to it The WACC not containing see more projects into its capable for the year should be made The Best ou to con

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

Step: 3

blur-text-image

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

Supply Chain Finance Solutions

Authors: Erik Hofmann, Oliver Belin

1st Edition

3642175651, 978-3642175657

More Books

Students also viewed these Finance questions