Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. maui fabricators inc. is considering an investment

Maui Fabricators Inc. is considering an investment in equipment that will replace direct labor. The...

70.2K

Verified Solution

Question

Accounting

Maui Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $125,000 with a $15,000 residual value and an 8-year life. The equipment will replace one employee who has an average wage of $28,000 per year. In addition, the equipment will have operating and energy costs of $5,150 per year.

Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Multi-step Income Statement and Adjusting Entries Oregon Distributors, whose accounting year ends on December 31, had the...

Physics
1.2K views

What are WIMPs? Very small, low-mass stars A candidate class of dark matter that only interacts with...

Physics
1.2K views

Two carts with masses 250. g and 200. g are free to slide without friction on...

Biology
1.2K views

The Congo River stretches from Zambia into the Democratic Republic of the Congo and then...

Physics
1.2K views

20 The velocity of a small ball of mass M and density d when dropped...

Physics
1.2K views

16 Two large conducting plates having surface 3 charge densities G and respectively are fixed...

Geometry
1.2K views

Find the length of the hypotenuse of a right triangle with legs of 18 cm...

Basic Math
1.2K views

You just loaded data from a remote source into your notebook To begin you would...

Statistics
1.2K views

When a new drug is created the pharmaceutical company must subject it to testing before...

Calculus
1.2K views

6 A car has a 16 gallon fuel tank When driven on a highway it...

Accounting
1.2K views

which of the components of computerised system will be serverly impacted by the evolving digital...

Finance
1.2K views

The following is Justins credit card statement for November. Fill in the balance column and...