There are four approaches/methods used to replace an old information system with the new one. Describe...

There are four approaches/methods used to replace an old information system with the new one. Describe the four approaches and identify the situations where each approach may be most appropriate/desirable to use.

Expert Solution

ekkarill92 answered 2 years ago

Acer is contemplating to replace its old machinery with a new one. The cost of old...

Acer is contemplating to replace its old machinery with a new one. The cost of old machinery is 960,000. The old machinery was bought 6 years ago with a total useful life of 13 years. If sold now, the old machinery can be salvaged at $17,000. The existing machinery has the production capacity of 30,000 units. Acer Inc.'s finished product is called Product X which can be sold at $75, and has per unit variable cost of $42. The annual...

A company bought new heating system to replace (exchange) its old system that had an original...

A company bought new heating system to replace (exchange) its old system that had an original cost of $43,000 and accumulated depreciation of $36,000. The company also paid $40,000 cash. If the transaction has commercial substance, and the company lost $2,000 in this transaction, then the company should record the new heating system at: Select one: a. All answers are wrong. b. $40,000. c. $45,000. d. $42,000.

3. A French company is planning to replace the old machine for a new one. The...

3. A French company is planning to replace the old machine for a new one. The new machine will cost Euro 4 million, the old one can not be sold. The new machine will be used for 20 years, then it can be sold for 25% of the purchase price. Each year the company will save Euro 450,000 on the production costs, but the maintenance costs will be higher too: Euro 40,000 per year. The MARR of this company is...

Suppose Amazon is considering replacing an old packaging system with a new one. The old system...

Suppose Amazon is considering replacing an old packaging system with a new one. The old system has a book value of $50,000 and a remaining life of 10 years and could be sold for $75,000 right now. The new machine costs $150,000 and has a depreciable life of 10 years, annual operating costs $40,000 lower than the old machine. Assuming straight line depreciation, 40% tax rate, and no salvage value on either machine at the end of 10 years, should...

List and describe, and compare and contrast the four methods used in capital investment analysis

1. List and describe, then compare and contrast the four methods used in capital investment analysis....

1. List and describe, then compare and contrast the four methods used in capital investment analysis. 2. What is the implication regarding a project's return if the project has an investment cost of $400,000, a minimum rate of return of 12% and a positive NPV of $47,000? Answer the above questions. Answers must be at least 300 – 500 words in length

Describe the main approaches that was followed in designing the SCADA software system and the new approach for current systems

A swim club is designing a new pool to replace its old pool. The new pool...

A swim club is designing a new pool to replace its old pool. The new pool would need to last for 10 years since the club is planning on relocating after 10 years. A concrete shell would cost $85,000 and last for all 10 years. Another option is to install a vinyl liner that would cost only $70,000 to install. However, the vinyl is not guaranteed to last for all 10 years, and it has a 40% chance of breaking...

List and describe the four methods used to account for inventory? What effect does each inventory...

List and describe the four methods used to account for inventory? What effect does each inventory method used have on the firm’s reported profits and ending inventory levels? Which inventory method should be used if management anticipates a period of inflation? Why? What are some specific inventory carrying costs? Are these costs fixed or variable?

A firm is considering an investment of $480,000 in new equipment to replace old equipment with...

A firm is considering an investment of $480,000 in new equipment to replace old equipment with a book value of $95,000 and a market value of $63,000. If the firm replaces the old equipment with new equipment, it expects to save $120,000 in operating costs the first year. The amount of savings will grow at a rate of 8 percent per year for each of the following five years. Both pieces of equipment belong to asset class 8, which has...

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