Question
In: Finance
Flo's Frozen Yogurt shop is evaluating new dispensing machines. The Flownator has a first cost of...
Flo's Frozen Yogurt shop is evaluating new dispensing machines.
The Flownator has a first cost of $31665 and annual expenses of $9985 that will increase by $402 per year. It will require an overhaul at the end of year 5 at a cost of $5098. The Flownator will save $19666 per year in labor costs. The Flownator has a salvage value of $9706 and a lifespan of 11 years.
The YogGoo300 has a first cost of $22414 and annual expenses of $3837 that will increase by 3% per year. The YogGoo300 will save Flo's $10246 per year in labor costs. The YogGoo300 has a lifespan of 5 years.
What must the salvage value of the YogGoo30 be to make it equally desirable to the Flownator? Use a MARR of 3% to make your calculation.
Solutions
jeff jeffy answered 4 months agoRelated Solutions
Flo's Frozen Yogurt shop is evaluating new dispensing machines. The Flownator has a first cost of...
Flo's Frozen Yogurt shop is evaluating new dispensing
machines.
The Flownator has a first cost of $30,008 and annual expenses of
$9,865 that will increase by $496 per year. It will require an
overhaul at the end of year 5 at a cost of $5,050. The Flownator
will save $19,160 per year in labor costs. The Flownator has a
salvage value of $9,393 and a lifespan of 10 years.
The YogGoo300 has a first cost of $22,488 and annual expenses...
Flo's Frozen Yogurt shop is evaluating new dispensing machines. The Flownator has a first cost of...
Flo's Frozen Yogurt shop is evaluating new dispensing machines.
The Flownator has a first cost of $31279 and annual expenses of
$9501 that will increase by $467 per year. It will require an
overhaul at the end of year 6 at a cost of $6107. The Flownator
will save $19262 per year in labor costs. The Flownator has a
salvage value of $8475 and a lifespan of 10 years. The YogGoo300
has a first cost of $24866 and annual expenses...
Flo's Frozen Yogurt shop is evaluating new dispensing machines. The Flownator has a first cost of...
Flo's Frozen Yogurt shop is evaluating new dispensing
machines.
The Flownator has a first cost of $30126 and annual expenses of
$9957 that will increase by $569 per year. It will require an
overhaul at the end of year 4 at a cost of $5201. The Flownator
will save $19547 per year in labor costs. The Flownator has a
salvage value of $9942 and a lifespan of 10 years.
The YogGoo300 has a first cost of $24636 and annual expenses...
Breakeven Analysis Flo's Frozen Yogurt shop is evaluating new dispensing machines. The Flownator has a first...
Breakeven Analysis
Flo's Frozen Yogurt shop is evaluating new dispensing
machines.
The Flownator has a first cost of $30473 and annual expenses of
$9126 that will increase by $553 per year. It will require an
overhaul at the end of year 4 at a cost of $5207. The Flownator
will save $19007 per year in labor costs. The Flownator has a
salvage value of $9575 and a lifespan of 12 years.
The YogGoo300 has a first cost of $23190 and...
Marty’s Frozen Yogurt is a small shop that sells cups of frozen yogurt in a university...
Marty’s Frozen Yogurt is a small shop that sells cups of frozen
yogurt in a university town. Marty owns three frozen-yogurt
machines. His other inputs are refrigerators, frozen-yogurt mix,
cups, sprinkle toppings, and, of course, workers. He estimates that
his daily production function when he varies the number of workers
employed (and at the same time, of course, yogurt mix, cups, and so
on) is as shown in the accompanying table.
Quantity of labor ( Workers )
Quantity of Yougart...
A self-serve frozen yogurt shop has 8 candy toppings and 4 fruit toppings to ..
A self-serve frozen yogurt shop has 8 candy toppings and 4 fruit toppings to choose from. How many ways are there to top a frozen yogurt?
You are evaluating two different silicon wafer milling machines. The Techron I cost $270,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I cost $270,000, has a 3-year life, and has pretax
operating costs of $73,000 per year. The Techron II costs $470,000,
has a 5-year life, and has pretax operating costs of $46,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $50,000.
If your tax rate is 24 percent and your discount rate is 10
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Suppose that new machines cost $504. The marginal benefit from new machines is: MB = 246...
Suppose that new machines cost $504. The marginal benefit from
new machines is: MB = 246 – 6K, where K is the number of machines
purchased. The depreciation rate is 12%, the dividend yield is 6%,
and the corporate tax rate is 35%. What would be the marginal cost
of each dollar of machinery investment in the following
situations?
a. Firms are allowed to expense the machine, and there is no tax
credit
b. Firms are allowed to depreciate the...
The Campbell Company is evaluating the proposed acquisition of a new milling machine. The machines base...
The Campbell Company is evaluating the proposed acquisition of a
new milling machine. The machines base price is $ 108,000, and it
would cost another $ 12,500 to modify it for special use. The
machine falls into the MACRS 3- year class, and it would be sold
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Yummy Brands is considering the purchase of a new machine that dispenses yogurt. The machine cost...
Yummy Brands is considering the purchase of a new machine that
dispenses yogurt. The machine cost $300,000, useful life 5 years 0
salvage. Annual revenues and expenses associated with the new
machine follow:Sales revenue$325,000Operating Expenses:Advertising$
30,000Operator salaries 60,000 Ingredients cost 32,000 Maintenance
contract 20,000Depreciation ? You have been hired as Yummy Brands
chief financial officer and you need to advise the company CEO if
the company should invest in this machine. Show your analysis/
calculations in good form for all...
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