The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine the best average rate of return. Which machine has the best average rate of return? Machine A Machine B Machine C Estimated average annual income $43,540 $72,900 $72,600 Average investment 311,000 243,000 484,000
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The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine the best average
Machine A | Machine B | Machine C | |
Estimated average annual income | $43,540 | $72,900 | $72,600 |
Average investment | 311,000 | 243,000 | 484,000 |
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- The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B Machine C Estimated average income $48,288.80 $77,802.90 $72,428.85 Average investment 344,920.00 259,343.00 482,859.00 a. Machine B b. Machine C C. Machine A d. Machines B and C have the same preferred average rate of return.The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B Machine C Estimated average income $43,866.76 $73,406.10 $62,231.25 Average investment 313,334.00 244,687.00 414,875.00The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Line Item Description Machine A Machine B Machine C Estimated average income $47,060.44 $72,961.50 $73,785.60 Average investment 336,146.00 243,205.00 491,904.00 a. Machine C b. Machine A c. Machines B and C have the same preferred average rate of return. d. Machine B
- The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B $45,730.58 $60,103.80 326,647.00 200,346.00 Ca, Machines B and C have the same preferred average rate of return b. Machine C C. Machine 11 d. Machine A Estimated average income Average investment Machine C $74,639.55 497,597.00Consider VM * D' * s recent investment in the 3D MRI equipment. While this technology allows the Medical Imagining Center to stay at the forefront of technological developments in the field, it is currently underutilized. How would you propose to treat the new equipment from a costing system standpoint? Let's assume that the operating data of the new 3D MRI machine is the following: Initial Cost = $5, 000, 000 Useful life = 10 years Residual value = 0 Overhead costs (other than depreciation) per year =\$ 250000 Capacity = 2,500 hours / year Current utilization = 500 hours / yearThe manufacturing process requires a specific machine and one such machine has been identified for possible investment: Machine £ Original investment required 1,500,000 Estimated future cash flows: Year 1 641,250 Year 2 701,250 Year 3 495,000 Year 4 165,000 Year 5 165,000 Estimated residual value 108,000 To ascertain if this investment should be made it will be necessary to calculate the Payback Period, The Accounting Rate of Return and the Net Present Value. Taylor Manufacturing Plc has a requirement that investment projects should payback within four years and uses its Weighted Average Cost of Capital (WACC) as the discount factor for the Net Present Value. The WACC is also used as the minimum…
- do exercise in excel. 7-41. Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data: Machine A Machine B Capital investment Life Terminal BV (and MV) Annual receipts Annual expenses $30,000 8 years $0 $188,000 $170,000 $20,000 12 years $4,000 $150,000 $138,000 7.41 Do not assume repeatability. Use AW Determine which is the better alternative, asstming repeatability and using SL depreciation, an income-tax rate of 40%, and an after-tax MARR of 10%. (7.9)help now please. ! Required information [The following information applies to the questions displayed below] The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income Less: Target income Residual income (loss) $ Income $ 6,350,000 1,806,000 1,100,000 $ Compute return on investment for each investment center. Which center performed the best based on return on investment? A 3 Cameras 6,350,000 $ 3,444,000 (2,906,000) $ Average Assets $ 28,700,000 12,900,000 17,000,000 Phones Ĉ 1,806,000 $ 216,720 (1,589,280) $ Computers 1,100,000 132,000 (968,000)AMT, Inc., is considering the purchase of a digital camera for maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineers a. You have been asked by management to determine the PW of the EVA of this equipment, assuming the following estimates: capital investment = $362,000; market value at end of year six = $115,000; annual revenues = $111,000; annual expenses = $10,000; equipment life = 6 years; effective income tax rate = 27%; and after-tax MARR = 10% per year. MACRS depreciation will be used with a five-year recovery period. b. Compute the PW of the equipment's ATCFS. Click the icon to view the GDS Recovery Rates (r,) for the 5-year property class. E Click the icon to view the interest and annuity table for discrete compounding when the MARR…
- Problem 08.023- Determine which robot to select based on incremental rate of return A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of $92,000, an annual M&O cost of $31,000, and $44,000 salvage value, and it will improve revenues by $96,000 per year. Robot Y has a first cost of $146,000, an annual M&O cost of $28,000, and $47,000 salvage value, and it will increase revenues by $129,000 per year. The company's MARR is 19.00% per year, and it uses a 3- year study period for economic evaluations. Calculate the incremental ROR, and identify the robot the manager should select. (Round the final answer to three decimal places.) The incremental ROR is %. The manager should select robot YQ18. A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of $76,000, an annual M&O cost of $31,000, and $42,000 salvage value, and it will improve revenues by $96,000 per year. Robot Y has a first cost of $146,000, an annual M&O cost of $28,000, and $47,000 salvage value, and it will increase revenues by $121,000 per year. The company’s MARR is 46% per year, and it uses a 3-year study period for economic evaluations. Calculate the incremental ROR, and identify the robot the manager should select. The incremental ROR is The manager should select robot ?Required information. [The following information applies to the questions displayed below) The following information is provided for each Investment Center. Investment Center Cameras Phones Computers Income $ 4,500,000 1,500,000 800,000 Average Assets $ 20,000,000 12,500,000 10,000,000 Compute return on investment for each investment center. Which center performed the best based on return on investment? Complete this question by entering your answers in the tabs below. Return on Performance Investment Based on ROI Compute return on investment for each investment center. Note: Round your final answer to 1 decimal place. Investment Center Cameras Phones Computers Income $ 4,500,000 $ 1,500,000 800.000 Average Assets 20,000,000 12,500,000 Return on Investment % % 10,000,000 %