Question
In: Accounting
In a PCB factory, a plating line was bought 6 years ago for $300,040. Since it...
In a PCB factory, a plating line was bought 6 years ago for $300,040. Since it caught fire last night, its life span is much shortened and remains for only 1 more year from now. There would be no salvage value. (Round off your final answers to 2 decimal places)
Since the fire suddenly shortened the life span of the plating line, the engineer wants to migrate the risk by subscribing a special Refitting Service Plan so that the life span of the new plating line can be extended to 10 years. The first annual refitting service charge $15,000 will be paid at the Day 1 of purchasing the new equipment. As the equipment ages, this charge is expected to be increasing at $1,504 every year. The MARR is 10% per annum.
[NOTE: Year 0 is today; Year 1 is Day 1 of purchasing the new equipment]
How much would be the total Refitting Service charges discounted back to the Day 1 of purchasing the new equipment?
Solutions
Expert Solution
Note : If you have any queries, post a comment, I will solve your query earliest
ekkarill92 answered 2 years agoRelated Solutions
It has been exactly 6 years since Alan bought his house for $375,000. Six years ago,...
It has been exactly 6 years since Alan bought his house for
$375,000. Six years ago, he paid $75,000 as a down payment and took
out a 35-year mortgage for the remaining amount with monthly
payments and a quoted APR of 5.5% (with semi-annual compounding).
Today, Alan has received a promotion to a higher paying managerial
position at his firm. He has decided to pay part of his mortgage in
order to reduce his monthly payments. Alan has already made...
It has been exactly 6 years since Alan bought his house for $375,000. Six years ago,...
It has been exactly 6 years since Alan bought his house for
$375,000. Six years ago, he paid $75,000 as a down payment and took
out a 35-year mortgage for the remaining amount with monthly
payments and a quoted APR of 5.5% (with semi-annual compounding).
Today, Alan has received a promotion to a higher paying managerial
position at his firm. He has decided to pay part of his mortgage in
order to reduce his monthly payments. Alan has already made...
MCCB Corp. bought a machine since 3 years ago for RM 90,000 with a remaining useful...
MCCB Corp. bought a machine since 3 years ago for RM 90,000 with
a remaining useful life of 2 years and a salvage value of RM
20,000. The company had also incurred additional costs of
transportation and training staff of RM 10,000 and RM 5,000
respectively when purchasing the machine. At present, this machine
can be sold at RM 40,000 in a market. The company has earnings
before tax of RM 50,000 and it usually adopts the sum of year’s...
MCCB Corp. bought a machine since 3 years ago for RM 90,000 with a remaining useful...
MCCB Corp. bought a machine since 3 years ago for RM 90,000 with
a remaining useful life of 2 years and a salvage value of RM
20,000. The company had also incurred additional costs of
transportation and training staff of RM 10,000 and RM 5,000
respectively when purchasing the machine. At present, this machine
can be sold at RM 40,000 in a market. The company has earnings
before tax of RM 50,000 and it usually adopts the sum of year’s...
MCCB Corp. bought a machine since 3 years ago for RM 90,000 with a remaining useful...
MCCB Corp. bought a machine since 3 years ago for RM 90,000 with
a remaining useful life of 2 years and a salvage value of RM
20,000. The company had also incurred additional costs of
transportation and training staff of RM 10,000 and RM 5,000
respectively when purchasing the machine. At present, this machine
can be sold at RM 40,000 in a market. The company has earnings
before tax of RM 50,000 and it usually adopts the sum of year’s...
. The Green Shingle purchased a parcel of land 6 years ago for $299,500. Since the...
. The Green Shingle purchased a parcel of land 6 years ago for
$299,500. Since the firm wasn't ready to use the site itself at
that time, it decided to lease the land for $28,000 a year. The
Green Shingle is now considering building a hotel on the site. The
current value of the land is $347,500. The firm has a mortgage
secured by the property with $12,670 annual interest expenses, and
would need to spend $64,000 to improve the...
Your firm bought a new sanding machine for its factory floor two years ago for $40,000....
Your firm bought a new sanding machine for its factory floor two
years ago for $40,000. The current market value (Year 0) of the
machine is $10,000 and you believe that it will last 5 more years
(Years 1 - 5). When you're done with the machine, you can sell it
for scrap and receive $1,000. However, your firm is now considering
buying a more advanced sander for $80,000. The more advanced
machine also last 5 more years. The new...
Your firm bought a new sanding machine for its factory floor two years ago for $40,000....
Your firm bought a new sanding machine for its factory floor two
years ago for $40,000. The current market value (Year 0) of the
machine is $10,000 and you believe that it will last 5 more years
(Years 1 - 5). When you're done with the machine, you can sell it
for scrap and receive $1,000. However, your firm is now considering
buying a more advanced sander for $80,000. The more advanced
machine also last 5 more years. The new...
Jingfei bought a house 6 years ago for $200,000. Her down payment on the house was...
Jingfei bought a house 6 years ago for $200,000. Her down
payment on the house was the minimum required 10% at that time she
financed the remainder with a 30-year fixed rate mortgage. The
annual interest rate was 8% and she was required to make monthly
payments, and she has just made her 72th payment. A new bank has
offered to refinance the remaining balance on Jingfei's loan and
she will have to pay $1,320 per month for the next...
You bought a car three years ago for $20,000 and financed $16,000 at 6 percent APR...
You bought a car three years ago for $20,000 and financed
$16,000 at 6 percent APR for 60 months. You are now thinking about
trading in your vehicle for a new one and would like to know how
much you still owe on the loan. Assuming that you have made 36
payments so far, what is the balance remaining on your
loan?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What are the two reasons that limit the ability of correlational studies to provide information on...
- Suppose that 20 monthly payments of $100 each are followed by 30 monthly payments of $200...
- D. Explain what it means for recommendations to be specific and actionable. E. Discuss how charts...
- Capital Toys’ management is considering eliminating product A, which has been showing a loss for several...
- Computer Networks IT 210 Please Use your own words . sorry No handwriting no copy paste...
- The Coronavirus will obviously impact the economy of big organizations like FIFA or the NBA but...
- Question: what is the difference between rights of assertion and observation assertion. Include which financial statements...
ADVERTISEMENT