Explore BrainMass
Share

Finding EAC values for given proposals

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

An office prints 200,000 pages per year. The Dell brand printer costs \$1100 and will produce a total of 600,000 copies before it wears out (3 year life). The Cannon brand machine costs \$1,800 and will produce 1,000,000 copies in its 5 year life. Maintenance and material costs are \$.05 a page for the Dell machine and \$.03 with Cannon machine. The Dell machine has a salvage value of \$150 and the Cannon machine will have a salvage value of \$225. The required return is 8 percent a year. Which machine should the company acquire? Show numbers and assume year-end cash flows for simplicity.

Net present value for Dell copier_____________ Equivalent annuity for Dell copier_________

Net present value for Cannon copier____________ Equivalent annuity for Cannon copier_________

Which copier should be chosen? _______________

Solution Summary

This solution depicts the steps to calculate NPV and EAC values for given proposals in Excel.

\$2.19

Apple Inc: products, investments in R&D, compensation

1) Rank the products in terms of revenues: For example, which product produced the most sales, which one the least;

2) Rank the products by income produced;

3) Did your rank the products in the same sequence; that is, all products ranked the same in terms of both revenue and income generated or different ranking. If different what caused the different rankings?

4) How much did Apple invest in Research and Development over the last year? Is R&D spending slowing down or gaining over the last three years?

5) How much did the company's top five officers receive in compensation during the year? What percentage of total income did they receive in the last year?

View Full Posting Details