100% Original, Plagiarism Free, Tailored to your instructions

Order Now!

See Through Imaging Center, Inc. acquired an MRI machine fiv

See Through Imaging Center, Inc. acquired an MRI machine five years ago for $480… Show more Replacement Project See Through Imaging Center, Inc. acquired an MRI machine five years ago for $480,000. The tax laws at the time permitted straight-line depreciation over eight years with the salvage value of $100,000. The new machines purchased today can be depreciated straight line over five years with the same salvage value of $100,000. The old machine has not performed well, and management is considering replacing it with a new one that will cost $720,000. If the new machine is purchased, it is estimated that the old one can be sold for $200,000. The quoted costs include all freight, installation, and setup. The MRI machine requires two technicians, each of whom earns $70,000 a year including all benefits and payroll costs. The new machine is more efficiently designed and will require only one operator earning the same amount. The old machine has the following history of maintenance cost and significant downtime: Year 1 2 3 4 5 Hours down 40 60 100 130 128 Maintenance warranty $10 $35 $42 $45 expense (in $000’s) Downtime of the machine is a major inconvenience. The managers estimate that every hour of downtime costs the company $700. The makers of the replacement machine have said that See Through Imaging Center will spend about $15,000 a year maintaining the MRI machine and that an average of 40 hours downtime a year should be expected. During the first year the maintenance is free. The new machine is expected to produce higher quality output than the old one. The result is expected to be better customer satisfaction and possibly more referrals in the future. Management would like to include some benefit for this effect in the analysis, but is unsure of how to quantify it. Assume See Through Imaging Center Inc.’s marginal tax rate is 35%, and that the company is currently profitable so that changes in taxable income result in tax changes at 35% whether positive or negative. Assume any gain on the sale of the old machine is also taxed at 35%, since corporations don’t receive favorable tax treatment on capital gains. Estimate the incremental cash flows over the next five years associated with buying the new machine. Calculate the NPV and IRR and recommend what to do assuming 11% cost of capital. Also, not that you will have to make certain assumptions regarding the data. Not all is certain, as is usually the case in real life. • Show less

Our Service Charter

  1. Excellent Quality / 100% Plagiarism-Free

    We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
  2. Free Revisions

    We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
  3. Confidentiality / 100% No Disclosure

    We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
  4. Money Back Guarantee

    If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
  5. 24/7 Customer Support

    We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.

Excellent Quality
Zero Plagiarism
Expert Writers

Instant Quote

Single spaced
approx 275 words per page
Urgency (Less urgent, less costly):
Total Cost: NaN

Get 10% Off on your 1st order!