Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your answers are saved automatically Remaining Time: 1 hour, 26 minutes, 52 seconds. Question Completion Status: > & Moving to another question will save this

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Your answers are saved automatically Remaining Time: 1 hour, 26 minutes, 52 seconds. Question Completion Status: > & Moving to another question will save this response. Question 1 of 4 gestion 1 25 points Swed A company purchases a piece of manufacturing equipment for rental purposes. The expected annual income is $7.100. Its useful life is four (4) years. Expenses are estimated to be $1.500 annually. If the purchase price is $20,000, what is the prospective rate of return of this investment alternative if is going to last 4 years? IRR - 3.90% b IRR - 6.08% IRR -5.08% Od IRR 3.00% Moving to another question will save this response Question 1 of 4 MacBook Ain 30 ad DII DD $ % & Question Completion Status: Moving to another question will save this response Question 2 of 4 Question 2 25 points S. Machines that have the following cost are under consideration for a new manufacturing process. Which is the best alternative using the IRR incremental comparison? Machine A Machine B First cost $42,000 $70,000 Semiannual operating cost 8,000 9,000 Semiannual income 15,000 21,000 Semiannual income gradient 100 100 Salvage Value 9,000 11,000 Life in year 4 4 increments 25.9% IRR incremental - 19.0% IRR incremental-20.0% d IRR incremental - 22.9% Moving to another question will save this response Question 2 of 4 Remaining Time: 1 hour, 26 minutes, 33 seconds. Question Completion Status: 10 20 Moving to another question will save this response Question 3 of 4 Question 3 25 point Machines that have the following core under consideration for a new manufacturing process. Which is the best alternative using the mutually exclusive method or incremental muthod (Acomparison? The MARA IS 10% compounded arvusly. Which is the best amative? Machine A Machine B First cost $53,000 $72,000 Semiannual operating cost 8,000 10,000 Semiannual income 15,000 20,000 Semiannual income gradient 200 200 Salvage Value 9,000 11,000 Life in year 4 4 DPR incremental 5% IRR incremental IRR increments - 7 IRR incremental -10% d Moving to another question will save this reporte Question of 4) Question 4 25 points Saved A company purchases a piece of manufacturing equipment for rental purposes. The expected income is $3600 the first year and increase $100 every year thereafter. Its useful ife is 8 years. Expenses are estimated to be $600 annually, if the purchase price is $24,000 and there is a salvage value of $4,500. The prospective rate of return of these investment alternative is 15% EAW.5143 TA = $1,043 EAN-$1,743 O EAN-11

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Managing Business Ethics Making Ethical Decisions

Authors: Alfred A. Marcus, Timothy J. Hargrave

1st Edition

1506388590, 978-1506388595

Students also viewed these Finance questions

Question

How do you add two harmonic motions having different frequencies?

Answered: 1 week ago