This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Replacing old equipment at an immediate cost of $5000 and $7000 six years from now will result in a ... (Read 411 times)

geodog55

  • Hero Member
  • *****
  • Posts: 530
on: Jun 7, 2019

Question 1

LD Winery expects a demand of 10 000 bottles per year for a special purpose wine for six years. Net return per unit is $6.10. To produce the wine, LD must buy equipment costing $200 000 with a life of six years and a salvage value of $10 000 after six years. The company estimates that repair costs will be $8000 per year during Years 2 to 6. Should LD invest in the equipment if it requires a return of 16% on its investment?

Question 2

Replacing old equipment at an immediate cost of $5000 and $7000 six years from now will result in a savings of $3000 semi-annually for ten years. At 11% compounded annually, should the old equipment be replaced?
Contemporary Business Mathematics with Canadian Applications ¦ Hummelbrunner, Halliday, Coombs ¦ 11th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by geodog55 on Jun 7, 2019

xoxo123

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jun 7, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 49% of students answer this correctly


geodog55

  • Hero Member
  • *****
  • Posts: 530
Reply #2 on: Jun 7, 2019
Thank you!


xoxo123

  • Sr. Member
  • ****
  • Posts: 335
Reply #3 on: Jun 7, 2019
Always glad to help...


« previous next »
 

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

The Dingo was the first placental mammal introduced to Australia, around 4000 years ago The Dingo was the first placental mammal introduced to Australia, around 4000 years ago
Deciduous and permanent teeth. (A) The deciduous teeth, with the age of eruption given in months; (B Deciduous and permanent teeth. (A) The deciduous teeth, with the age of eruption given in months; (B
The approval of a new drug is a four-stage process: (1) preclinical investigation, (2) clinical inve The approval of a new drug is a four-stage process: (1) preclinical investigation, (2) clinical inve
Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first
Parenting Tips for Teen Years Parenting Tips for Teen Years
Drug tolerance: A shift in the dose-response curve to the right as a result of exposure to the drug. Drug tolerance: A shift in the dose-response curve to the right as a result of exposure to the drug.
Video: Neurosynapse Animation

For a complete list of videos, visit our video library