Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. show all steps and equations. 2) you are evaluatin

Show all steps and equations. 2) You are evaluating two different aluminum milling machines. The Alumina I...

60.1K

Verified Solution

Question

Finance

Show all steps and equations.

2) You are evaluating two different aluminum milling machines.The Alumina I costs $240,000, has a three-year life, and has pretaxoperating costs of $63,000 per year. The Alumina II costs $420,000,has a five-year life, and has pretax operating costs of $36,000 peryear. For both milling machines, use straight-line depreciation tozero over the project's life and assume a salvage value of $40,000.If your tax rate is 35 percent and your discount rate is 10percent, which do you prefer? Why?

Answer & Explanation Solved by verified expert
3.9 Ratings (447 Votes)
Alumina I Cost of Machine 240000 Useful Life 3 years Annual Depreciation Cost of Machine Useful Life Annual Depreciation 240000 3 Annual Depreciation 80000 Annual OCF Pretax Operating Costs 1 tax tax Depreciation    See Answer
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

Finance
1.2K views

Peoples’ Savings Bank, a thrift institution, has a cumulative gap for the coming year of +$145...

Medical Sciences
1.2K views

differentiate between mucous and serous membranes

Psychology
1.2K views

After reading the cases below please answer each question for each case   (200 words minimum each) What...

Psychology
1.2K views

Where do individual differences seem to arise in the way we perceive the world? Describe the...

Biology
1.2K views

What is a biofilm and how does it help microbes?Challenge Questions1. In this lecture, there...

Biology
1.2K views

What happens after a mass extinction or whe a few individual leave a populatio and...

Physics
1.2K views

A stone of mass m 1 0kg is suspended from the free end of a...

Accounting
1.2K views

A product sells for $100 and has the following cost per unit: If the company's...

Accounting
1.2K views

Two part question: What would you earn when you exercise a call option that you...

Accounting
1.2K views

Which of the following provides for a reduction in the employer's state unemployment tax rate...

Accounting
1.2K views

The stockholders' equity section of Pina Colada Corp.'s balance sheet at December 31 is presented...

Finance
1.2K views

Question 12 1 pts Based on the information of Question 11, calculate the current value...