HAN Assignment, JCU, Singapore: A company has the opportunity of buying a new high-tech metal cutter which will save the company
| University | James Cook University (JCU) |
Question
A company has the opportunity of buying a new high-tech metal cutter which will save the company $14,000 per year in labor costs. This metal cutter costs $70,000 and is estimated to last 7 years. The cutter’s salvage value at the end of its useful life is $16,000. Straight-line method of depreciation will be used for this equipment.
If the company goes ahead with the new metal cutter, it can sell its old cutter for $5,000 today. The old cutter has an existing net book value of $8,000.
The new machine will require an initial working capital of $4,500, which will be recovered at the end of the 7 years. The company’s required rate of return is 10 percent and the tax rate is 30 percent.
Required:
Appraise the cutter project based on the net present value. Discuss the pitfalls of the project decision.
Hire a Professional Essay & Assignment Writer for completing your Academic Assessments
Looking for Principles of Logistics Management Assignment assistance at the Singapore Institute of Management (SIM)? Our top-notch Essay Writing Services Singapore cater to SIM students seeking help with TMA and individual assignments. Our experts ensure the finest quality solutions while focusing on analyzing how a company competes within its industry. Gain an edge by understanding competition and industry players with our best assignment help services. Pay our experts to ace your course effortlessly.
- MKTG3002 Digital and Social Media Marketing Plan Assignment 2 Group Report | UON
- NUR09717 Promoting Excellence in Older People’s Care Assignment Essay | Edinburgh Napier University
- 7WBS2008 Strategic Marketing Planning and Entrepreneurship Assignment CW1 | PSB Academy
- SM9689 Responsible Strategy Individual Assignment Report and Presentation September 2025
- BM9615 Project Management Assessment Individual Report | Northumbria University
- Introduction to Data Communications Assignment Case Study Individual Report | Singapore Management University
- Arts Marketing and Audience Development Assessment 2 Case Study | SMU Singapore
- NUR09718 Advancing Practice through Research Assignment | Edinburgh Napier University (ENU)
- MKTG1001 Foundations of Marketing Assignment 2 Individual Report | The University of Newcastle (UoN)
- S2010C Health and Wellness Graded Assignment AY2025 Term 4 – Republic Polytechnic (RP)
