3232ex11-4 - 3232ex11-4 Old machine info: Purchase 4 yrs...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 3232ex11-4 Old machine info: Purchase 4 yrs ago for $9000 Requires immediate $1200 overhaul 5 yrs life remaining with no salvage value Current mkt value $5000, losing $1000 per yr Current operating cost $2000, increasing by $1500/yr New machine info: Cost $10,000 Operating cost: $2000 + 800/yr Salvage: $6000 after 1 yr, decreasing by 15%/yr compounded Other MARR 15% CCA Class 43: 30% Marginal Tax Rate: 40% When should the old machine be replaced? NOTE: See class notes on incremental analysis for years 3 and 4 Defender info Yr-4-3-2-1 1 2 3 4 5 CCA 1,350.00 2,295.00 1,606.50 1,124.55 787.19 551.03 385.72 270.00 189.00 UCC 9,000.00 7,650.00 5,355.00 3,748.50 2,623.95 1,836.77 1,285.74 900.01 630.01 441.01 S 5,000.00 4,000.00 3,000.00 2,000.00 1,000.00 0.00 Salvage gain 2,376.05 2,163.24 1,714.26 1,099.99 369.99-441.01 Disp Tx 950.42 865.29 685.71 439.99 148.00-176.40 Net Salvage 4,049.58 3,134.71 2,314.29 1,560.01 852.00 176.40 Oper. Cost 2,000.00 3,500.00 5,000.00 6,500.00 8,000.00 Overhaul 1,200.00 Year O&M A/T O&M UCC CCA...
View Full Document

Page1 / 3

3232ex11-4 - 3232ex11-4 Old machine info: Purchase 4 yrs...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online