Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $2,370,000 and will last for 5 years. Variable costs are 34 percent of sales, and fixed costs are $142,000 per year. Machine B costs $4,700,000 and will last for 8 years. Variable costs for this machine are 28 percent of sales and fixed costs are $116,000 per year. The sales for each machine will be $9,400,000 per year. The required return is 10 percent and the tax rate is 35 percent. EAC for machines A and B are ?
Paper#11976 | Written in 18-Jul-2015Price : $25