-
+1 - 312-224-1615
Get in touch with us
-
support@helpwithassignment.com
Send us an e-mail
Solution Library
Optimal Replacement Strategy For A Machine
Question
A machine for shaping corkscrews tends to break down more often as it ages, producing less cork screws for sale, and costing more to maintain. What is the optimal replacement strategy for the machine given the following data:
|
Cost of new machine |
$300 |
|
|
|
Age of machine (years) |
1 |
2 |
3 |
|
Revenue ($) |
340 |
280 |
200 |
|
Maintenance ($) |
40 |
50 |
60 |
|
Scrap Value ($) |
200 |
170 |
130 |
For tax purposes the corkscrew machine will be depreciated straight line over three years regardless of the replacement strategy adopted. The tax rate is 30% and investors cannot claim franking credits. The corkscrew manufacturer requires a 10% pa. after tax return on investments.
Summary
The question belongs to Finance and it discusses about optimal replacement strategy for a machine making corkscrews keeping in mind the tax rate.
Total Word Count 58
Download Full SolutionWHAT OUR STUDENTS SAY
My My dream of becoming a corporate cost accountant was hindered when I stumbled into the maze of the statements of financial position. However, the accounting assignment help experts at TheReliableTutor.com helped me go through the rough patch and now while I am pursuing my Masters also, I rely on them and only them.
Alexandra Metaxas Student
I was stuck badly with my mechanical engineering kinetic energy assignment when I started searching online. Obviously I was not being able to find anyone who is from New Zealand who can actually help me out. But luckily I bumped into HwA where I saw they have engineering experts from New Zealand and was somewhat relieved. Moreover, the thing that made me a fan and a regular client of HwA is that from the first assignment onwards I got excellent grades.
Oliver Brown Student
Your Team saved me from failing by helping me at the last minute. Thanks guys!
Darrel Student
After I moved to Australia to study Computer Science and Engineering, I found out that the things are quite different than what it used to be in the Indian universities. The course structure is much more practical oriented and thus the numbers of assignments are also more. I was clueless and was struggling to cope when I came across HwA. Thanks to them I got through my first two semesters with good grades and that boosted my confidence. Now I am pursuing my post-graduation from a Queensland based reputed technology university and still taking help from HwA.
Gary Roberts Student
These guys are very timely in their delivery. There is no need to panic once you submit your thesis writing request with TheReliableTutor. Their Stats thesis writing experts are extremely professional in their approach and provide you with the right guidance with your Stats thesis in a way that is best suited to your needs exactly.
Richard Wyatt Student
Comments
this is a very good website
I have 50 questions for the same test your page is showing only 28
hi can you please help or guide me to answer my assignments. thanks
hi can anyone help or guide me to my assignments. thanks
This solution is perfect ...thanks
Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes
Perfect bank of solution.
great !
thanks for the quick response. the solution looks good. :)
thnx for the answer. it was perfect. just the way i wanted it.
works fine.