Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the production manager on the ofon phase 2 offshor

The production manager on the Ofon Phase 2 offshore platform operated by Total S.A. must...

80.2K

Verified Solution

Question

Accounting

image

The production manager on the Ofon Phase 2 offshore platform operated by Total S.A. must purchase specialized environmental equipment or an equivalent service. The first cost is $250,000 with an AOC of $72,000. The manager has let it be known that he does not care about the salvage value because he thinks it will make no difference in the decision-making process. His supervisor estimates the salvage might be as high as $100,000 or as low as $10,000 in 3 years, at which time the equipment will be unnecessary. Alternatively, a subcontractor can provide the service for $190,000 per year. The total offshore project MARR is 13% per year. Determine if the decision to buy the equipment is sensitive to the salvage value The annual worth of high salvage value is $ The annual worth of low salvage value is $ Decision is (Click to select) vto salvage value

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

Basic Math
1.2K views

5. An important characteristic of histograms, frequency polygons, and stem and leaf displays is a. size....

Biology
1.2K views

Binding of a signal to the receptor tyrosine kinase DIRECTLY, initially causes:

Programming
1.2K views

Python Create a move function that is only defined in the base class called Objects. The move...

Psychology
1.2K views

1. Can you please give an example of a question that would probably not yield any...

Advance Math
1.2K views

Find the general form of all (integer) solutions for the equation 22x+48y+4z = 18.

Biology
1.2K views

People who do not eat meat or eggs sometimes need to take food supplements to...

Physics
1.2K views

A concave mirror is kept as shown in figure Its principal axis coincides with the...

Geometry
1.2K views

There are 4 green 10 red and 6 yellow marbles in a bag You choose...

Statistics
1.2K views

You are playing a game where you must roll two 4 sided dice each die...

Algebra
1.2K views

Suppose Aaron is going to build a playlist that contains 10 songs In how many...

Accounting
1.2K views

Class C0 is performing a target costing analysis of a hearing aid (Class C02), which...

Accounting
1.2K views

42-46. On August 5, this year, taxpayer (who is under age 55) sells his principal...