syrai1254

06.05.2020 • 

Business

A restaurant operator wishes to choose between two alternative roll-in storage units. Machine A will cost $9,000 and have a trade-in value at the end of its five-year life of $1,500. Machine B will cost $8,500 and at the end of its five-year life will have a trade-in value of $700. As- sume straight-line depreciation.Investment in the machine will mean that a part-time kitchen worker will not be required, and there will be an annual wage saving of $9,600. The following will be the operating costs, excluding depreciation, for each machine, for each of the five years.Machine A Machine B Year 12345Alternative 1Alternative 2$24,200 19,800 17,200 10,800$ 8,400 11,600 17,000 23,000 24,0008,000The amount of the investment under either alternative will be $70,000.Training $800Maintenance 750 $750 $750 $750 $750Overhaul Supplies Electricity300 300 100 100$550300 300 300 100 100 10012345$700650 $650 $650 $650 $650400500 500 500 500 500 100 100 100 100 100Income tax rate is 30 percent. For each machine, calculate the NPV by using a 12 percent rate. Ignoring any other considerations, which ma- chine would be the preferable investment?

Ответ:

alaynagrace1111

06.05.2020

Business

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Communism there is No private ownership,central government,No class Distinction, Production for basic needs.

For socialism there is limited Private owner ship, government and private entities,Limited class distinctions and production for societal needs .

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