Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. an industrial machine costing s14,000 will produce

An industrial machine costing S14,000 will produce net cash savings of $5,000 per...

90.2K

Verified Solution

Question

Accounting

image

An industrial machine costing S14,000 will produce net cash savings of $5,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs cost $5,000. The company's MARR IS 10% per year. Please calculate to 4 decimal places. Format: 0.0000 a What IRR will be earned on the purchase of this machine? Analyze the sensitivity of IRR to : $2,000 changes in the repair cost b. The IRR at a repair cost of $7000 is: U. c. The IRR at a repair cost of $3000 is: d. At what repair cost will the machine be no longer viable? (Round your answer to the nearest whole dollar. Format: 0000 No commas.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The length of time needed to complete a certain test is normally distributed with mean 77...

Statistics
Q

In a particular year, 68% of online courses taught at a system of community colleges were...

Statistics
Q

A disk with a c value of 1/2, a mass of 3 kg, and radius...

Physics
Q

What effect does studying with music have on student test scores? If... one student studies...

Biology
Q

Complete the paragraph proof of the Third Angles Theorem Then write a two column proof...

Geometry
Q

Ivanhoe Company follows ASPE. It transfers $395,000 of its accounts receivable to...

Accounting
Q

If 18,000 units were in beginning inventory, 27,000 units were started, and 9,000 units were...

Accounting
Q

Target Costing Toyota Motor Corporation uses target costing. Assume that Toyota marketing personnel estimate that...

Accounting
Q

Using the following information, you are to prepare a comprehensive budget for Friends, Again. The...

Accounting
Q

A company's current cash flow per share is $1.51. It's priceto-cash-flow ratio has averaged 33.4...

Finance
Q

Problem 1 Amsterdam Corporation prodaces medical grade isotopes. The isolopes are produced in a single...

Accounting
Q

1. Blue Corporation located and doing business in Cleveland, Ohio hired Mr. Harold Glick CPA,...

Accounting