Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / Ruston Ironworks Ruston Ironworks is considering a proposal to sell an existing lathe and purchase a new computeroperated lathe
Ruston Ironworks
Ruston Ironworks is considering a proposal to sell an existing lathe and purchase a new computeroperated lathe. Information on the existing lathe and the computer-operated lathe follow:
|
|
Existing lathe |
Computer-operated lathe |
|
Cost |
$100,000 |
$300,000 |
|
Accumulated depreciation |
60,000 |
0 |
|
Salvage value now |
20,000 |
|
|
Salvage value in 4 years |
0 |
60,000 |
|
Annual depreciation |
10,000 |
75,000 |
|
Annual cash operating costs |
200,000 |
50,000 |
|
Remaining useful life |
4 years |
|
a. 1.87 years
