Question
In: Finance
2) You are evaluating two different aluminum milling machines. The Alumina I costs $240,000, has a...
2) You are evaluating two different aluminum milling machines. The Alumina I costs $240,000, has a three-year life, and has pretax operating costs of $63,000 per year. The Alumina II costs $420,000, has a five-year life, and has pretax operating costs of $36,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $40,000. If your tax rate is 35 percent and your discount rate is 10 percent, which do you prefer? Why?
Answer this question using Microsoft Excel. Mark the key equations and write them out.
Solutions
jeff jeffy answered 3 months agoRelated Solutions
You are evaluating two different aluminum milling machines. The Alumina I costs $240,000, has a three-year...
You are evaluating two different aluminum milling machines. The
Alumina I costs $240,000, has a three-year life, and has pretax
operating costs of $63,000 per year. The Alumina II costs $420,000,
has a five-year life, and has pretax operating costs of $36,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project's life and assume a salvage value of $40,000.
If your tax rate is 35 percent and your discount rate is 10
percent, which do...
Show all steps and equations. 2) You are evaluating two different aluminum milling machines. The Alumina...
Show all steps and equations.
2) You are evaluating two different aluminum milling machines.
The Alumina I costs $240,000, has a three-year life, and has pretax
operating costs of $63,000 per year. The Alumina II costs $420,000,
has a five-year life, and has pretax operating costs of $36,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project's life and assume a salvage value of $40,000.
If your tax rate is 35 percent and your discount...
You are evaluating two different silicon wafer milling machines. The Techron I costs $267,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I costs $267,000, has a three-year life, and has pretax
operating costs of $72,000 per year. The Techron II costs $465,000,
has a five-year life, and has pretax operating costs of $45,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $49,000.
If your tax rate is 23 percent and your discount rate is 13
percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $273,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I costs $273,000, has a 3-year life, and has pretax
operating costs of $74,000 per year. The Techron II costs $475,000,
has a 5-year life, and has pretax operating costs of $47,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $51,000.
If your tax rate is 25 percent and your discount rate is 11
percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $255,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I costs $255,000, has a three-year life, and has pretax
operating costs of $68,000 per year. The Techron II costs $445,000,
has a five-year life, and has pretax operating costs of $41,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $45,000.
If your tax rate is 24 percent and your discount rate is 13
percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $231,000, has a...
You are evaluating two different silicon wafer milling
machines. The Techron I costs $231,000, has a three-year life, and
has pretax operating costs of $60,000 per year. The Techron II
costs $405,000, has a five-year life, and has pretax operating
costs of $33,000 per year. For both milling machines, use
straight-line depreciation to zero over the project’s life and
assume a salvage value of $37,000. If your tax rate is 23 percent
and your discount rate is 9 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $276,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I costs $276,000, has a 3-year life, and has pretax
operating costs of $75,000 per year. The Techron II costs $480,000,
has a 5-year life, and has pretax operating costs of $48,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $52,000.
If your tax rate is 21 percent and your discount rate is 12
percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $267,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I costs $267,000, has a three-year life, and has pretax
operating costs of $72,000 per year. The Techron II costs $465,000,
has a five-year life, and has pretax operating costs of $45,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $49,000.
If your tax rate is 23 percent and your discount rate is 13
percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I costs $258,000, has a three-year life, and has pretax
operating costs of $69,000 per year. The Techron II costs $450,000,
has a five-year life, and has pretax operating costs of $42,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $46,000.
If your tax rate is 35 percent and your discount rate is 9 percent,
compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $213,000, has a...
You are evaluating two different silicon wafer milling
machines. The Techron I costs $213,000, has a three-year life, and
has pretax operating costs of $54,000 per year. The Techron II
costs $375,000, has a five-year life, and has pretax operating
costs of $27,000 per year. For both milling machines, use
straight-line depreciation to zero over the project’s life and
assume a salvage value of $31,000. If your tax rate is 24 percent
and your discount rate is 9 percent, compute...
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