Purchase Solution

Doulas County Replacement Costs

Not what you're looking for?

Ask Custom Question

Doulas County's Photocopying

Equipment Replacement

Old Equipment Proposed Replacement Equipment
Useful life in years 5 3
Current age in years 2 0
Useful life remaining, in year 3 3
Original cost $25,000 $15,000
Accumulated amortization $10,000 0
Book Value $15,000 Not acquired yet
Disposal value(in cash) now $6,000 Not acquired yet
Disposal value in two years 0 0
Annual cash operating costs for power maintenance, toner, and supplies $14,000 $9,000

Assume the new equipment will have a three year life. Ignore taxes.
1. What are the relevant and irrelevant costs.
2. Would a list of only relevant costs be more clear than the list from #1?
3. Prepare an analysis to support your choice of alternatives.

Attachments
Purchase this Solution
Solution Summary

The relevant and not relevant costs are shown and an analysis prepared for your study.

Solution Preview

1.

Relevant costs are:

Disposal of old equipment
Cost of new equipment
Operating costs for both machines for the three ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

View More Free Quizzes
Related BrainMass Solutions

  • River County: Total cost of capital projects

    While there may be maintenance costs, capital costs to replacement them are far off. The schedule of items to be acquired is attached in Excel along with a budget showing how the total is arrive.

  • Preparing Business Messages

    I have to somehow get a new radio repeater installed in the county and have the county take responsibility for maintenance, repair, and replacement of the equipment.

  • Value of company's ending inventory

    332460 Value of company's ending inventory A company has the following per unit original costs and replacement costs for its inventory: Part A: 50 units with a cost of $5, and replacement cost of $4.50 Part B: 75 units with a cost of $6, and replacement

  • Med Max - activity based costing

    Total Activity Costs City General $ County General $ ________________________________________ 4. Compute Med Max's customer margin for City General and County General.

  • Costs of Implementing Technologies

    Replacement costs include the cost for the replacement of the working parts, which may deteriorate on time and costs related to the life of the filters, if used in the technology.

  • Non-profit accounting

    It incurred $6 million in construction costs to complete a new county jail. The new jail was funded entirely by the proceeds of long-term bonds.

  • Arguments Supporting Cost over Replacement Values

    It is probable that the replacement costs listed on a balance sheet will be incorrect as the statement is being published.

  • Birthing and parenting in different cultures

    All these governments and medical practices encourage breast-feeding through offering doulas, training and social supports.

  • Home improvements

    The cost of replacing water heaters includes the cost of disposing of the old heaters in a responsibly environmentally safe way at a cost of $50 per heater, as required by county ordinance.

View More Related Solutions