University | James Cook University (JCU) |
Subject | HAN Assignment |
HAN Assignment, JCU, Singapore: A company has the opportunity of buying a new high-tech metal cutter which will save the company
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.
Tags:-
- ELG101: Discovering Language Assignment, SUSS, Singapore: Speakers are creative users of the languages they speak. In our everyday interaction
- ELG101: Discovering Language Assignment, SUSS, Singapore: Demonstrate the articulation of the words in the above data set using the International Phonetic
- Principles of Project Management Individual Assignment, SUSS, Singapore: You are appointed a Project Manager in charge of organising and planning a project
- COR2223: Frontiers of Modern Computing Final Written Assignment, SMU, Singapore: Write a short story imagining a future scenario and how one or more of the modern computing technologies
- AC2101: Accounting Recognition and Measurement Assignment, NTU, Singapore: If NTU-C were to record the abovementioned transactions on 31 January, 28 February and 15 March 20×2
- BSE217: Motor Development, Control and Learning Assignment, SUSS, Singapore: Create a rating scale or categories of differentiation to rate the movement proficiencies of the individual
- BSE217: Motor Development, Control and Learning Assignment, SUSS, Singapore: Discuss the main theoretical foundations of Ecological Dynamics Theory
- NCO201: Learn To Learn, Learn For Life Tutor-Marked Assignment 2, SUSS, Singapore: Create a learning plan. Use this template to create your learning plan
- NCO201: Learn To Learn, Learn For Life Tutor-Marked Assignment 2, SUSS, Singapore: Self-reflection is a critical part of learning. By looking back at your process and analysing
- BPM301: LCC and Sustainable Design and Construction Assignment, SUSS, Singapore: A developer is building a new 3-storey sports complex on a 10-year leasehold land
UP TO 15 % DISCOUNT