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This is qusetion 2 Just use the some date us in question 2, I have uploaded question 2 Use the same data as in Question
This is qusetion 2
Just use the some date us in question 2, I have uploaded question 2
Use the same data as in Question 2. Please perform the following calculations for both plans. Q.3(a) Capitalized equipment cost [4] Q.3(b) Capitalized annual cash expenses [4] Q.3(0) Total capitalized cost [4] Q.3(d) Which plan do you recommend? 3] Use the same data as in Question 2. Please perform the following calculations for both plans. Q.3(a) Capitalized equipment cost [4] Q.3(b) Capitalized annual cash expenses [4] Q.3(c) Total capitalized cost [4] Q.3(d) Which plan do you recommend? [3] A company has received two alternate bids for a reaction step in their process as follows: Plan A Plan B Type of equipment Batch Continuous Initial cost of equipment $15,000 $35,000 Annual cash expenses $20,000 $12,000 (excluding depreciation cost) Service life 10 years 15 years Salvage value (at end of service life) $1,000 $2,000 The annual compound interest rate is 6%. Please perform the following calculations for both plans: Q.2(a) Annual depreciation cost of equipment (assume straight-line depreciation) [4] Q.2(b) Total product cost (annual basis) [4] Q.2(c) Percentage incremental rate of return of Plan B compared to Plan A [4] Q.2(d) Which plan do you recommend? [3] Use the same data as in Question 2. Please perform the following calculations for both plans. Q.3(a) Capitalized equipment cost [4] Q.3(b) Capitalized annual cash expenses [4] Q.3(c) Total capitalized cost [4] Q.3(d) Which plan do you recommend? [3] A company has received two alternate bids for a reaction step in their process as follows: Plan A Plan B Type of equipment Batch Continuous Initial cost of equipment $15,000 $35,000 Annual cash expenses $20,000 $12,000 (excluding depreciation cost) Service life 10 years 15 years Salvage value (at end of service life) $1,000 $2,000 The annual compound interest rate is 6%. Please perform the following calculations for both plans: Q.2(a) Annual depreciation cost of equipment (assume straight-line depreciation) [4] Q.2(b) Total product cost (annual basis) [4] Q.2(c) Percentage incremental rate of return of Plan B compared to Plan A [4] Q.2(d) Which plan do you recommend? [3] Step by Step Solution
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