The net present value of the costs of operating a machine for the next three years is $10,724 at a cost of capital of 15%. What is the equivalent annual cost of operating the machine?
A: $4697
B: $3575
C: $4111
D: $3109
A: $4697
B: $3575
C: $4111
D: $3109
A
举一反三
- 中国大学MOOC: The net present value of the costs of operating a machine for the next three years is $10,724 at a cost of capital of 15%. What is the equivalent annual cost of operating the machine?
- A company uses the machine hours method to depreciate the machinery in its factory. A machine that cost $120,000 has an estimated residual value of $30,000 at the end of its four-year useful operating life. Usage over the four years is expected to be:What is the depreciation charge for the machine in Year 3? A: $23,333 B: $31,111 C: $38,889 D: $76,667
- The rule for comparing machines with different lives is to select the machine with the greatest equivalent annual cost (EAC).
- The rule for comparing machines with different lives is to select the machine with the greatest equivalent annual cost (EAC). A: 正确 B: 错误
- The cost of a new machine is $250,000. The machine has a five-year life and no salvage value. If the cash flow each year is equal to 25 percent of the cost of the machine, calculate the payback period for the project. A: 2.0 years B: 2.5 years C: 3.0 years D: 4.0 years
内容
- 0
EVA = adjustedafter-tax operating income – (cost of invested capital – a percentage xadjusted average invested capital).
- 1
中国大学MOOC: Decker Company can purchase a new machine at a cost of $104,320 that will save $20,000 per year in cash operating costs. The machine has a 10-year life. Future cash flows are the same every year. What’s the IRR in this example?
- 2
The book value of an old machine is always considered an opportunity cost in a decision.
- 3
Though it had promise, in the end the project failed for three reasons: the cost of building the _____________ machine;
- 4
The operating system makes your machine easier to use.