Ballard MicroBrew is considering the purchase of an automated bottling machine for $59,000. The machine would replace an old plece of equipment that costs $15,000 per year to operate. The new machine would cost $7,000 per year to operate. The old machine currently in use is fully depreclated and could be sold now for a salvage value of $25,000. The new machine would have a useful life of 10 years with no salvage value. Requlred: 1. What is the annual depreclation expense assoclated with the new bottling machine? 2. What is the annual Incremental net operating Income provided by the new bottling machine? 3. What is the Initial Investment used for calculating the machine's simple rate of return? 4. What is the simple rate of return on the new bottling machine? Note: Round your answer to 1 decimal place l.e. 0.123 should be consldered as 12.3%
Other questions asked by students
Find PH of solutions from list below Bottle A : 200ml of 0.0750 M hcl (aq) Bottle...
Explain in brief why the study of genetics is important for human society.
Describe three different types of techniques used to multiplex signals.
In the diagram below QM is an altitude of right triangle PQR PM 8 and...
Pythagorean theorem In a right triangle the square of the length of the hypotenuse is...
Exercise 9-13(Algo) Retail inventory method; average cost [LO9-3] San Lorenzo General Store...
5. Complete the first three lines of the summary cash budget. Then do the analysis...
Bruins Company Bruins follows: Company has projected sales and production in units for the second...
Governments account for long term bonds in which of the following? (multiple answers are possible...
Stock Y has a beta of 1.28 and an expected return of 13.7 percent. Stock...
On April 1, year 1, Mary borrowed $250,000 to refinance the original mortgage on her...