Question
In: Accounting
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.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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
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
Describe the main approaches that was followed in designing the SCADA software system and the new approach for current systems
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...
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...
ABC Company is considering the acquisition of a new piece of equipment to replace an old,...
ABC Company is considering the acquisition of a new piece of equipment to
replace an old, outdated machine currently used in its business operations.
The new equipment would cost $135,000 and is expected to last 9 years. The
new equipment would require a repair of $25,000 in year four and another
repair costing $80,000 in year eight. Purchasing this new equipment would
require an immediate investment of $30,000 in working capital which would
be released for investment elsewhere at the...
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