{"id":8666,"date":"2020-11-18T20:09:22","date_gmt":"2020-11-18T20:09:22","guid":{"rendered":"http:\/\/onlineclassesguru.com\/?p=8666"},"modified":"2020-11-18T20:09:22","modified_gmt":"2020-11-18T20:09:22","slug":"acc-560-hw-hillsong-inc-manufactures-snowsuits-hillsong-is-considering-purchasing-a-new-sewing-machine-at-a-cost-of-2-45-million","status":"publish","type":"post","link":"https:\/\/onlineclassesguru.com\/index.php\/2020\/11\/18\/acc-560-hw-hillsong-inc-manufactures-snowsuits-hillsong-is-considering-purchasing-a-new-sewing-machine-at-a-cost-of-2-45-million\/","title":{"rendered":"ACC 560 HW: Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million"},"content":{"rendered":"<style type=\"text\/css\"><\/style><p>Exercise 12-3 (Video)<\/p>\n<p>Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased five years ago at a price of $1.8 million; six months ago, Hillsong spent $55,000 to keep it operational. The existing sewing machine can be sold today for $245,788. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for years 1 to 7:<\/p>\n<p>Year<\/p>\n<p>1<\/p>\n<p>$389,300<\/p>\n<p>2<\/p>\n<p>399,900<\/p>\n<p>3<\/p>\n<p>410,000<\/p>\n<p>4<\/p>\n<p>425,500<\/p>\n<p>5<\/p>\n<p>432,400<\/p>\n<p>6<\/p>\n<p>434,500<\/p>\n<p>7<\/p>\n<p>438,000<\/p>\n<p>The new sewing machine would be depreciated according to the declining-balance method at a rate of 20%. The salvage value is expected to be $379,400. This new equipment would require maintenance costs of $98,800 at the end of the fifth year. The cost of capital is 9%. Click here to view PV table. Use the net present value method to determine the following: (If net present value is negative then enter with negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round present value answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Calculate the net present value.<\/p>\n<p>Net present value<\/p>\n<p>$<\/p>\n<p>https:\/\/edugen.wileyplus.com\/edugen\/art2\/common\/pixel.gif<\/p>\n<p>Determine whether Hillsong should purchase the new machine to replace the existing machine?<\/p>\n<p>https:\/\/edugen.wileyplus.com\/edugen\/art2\/common\/pixel.gif<\/p>\n<p>Exercise 12-5 (Video)<\/p>\n<p>Bruno Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $442,000. The company believes that with this new machine it will improve productivity and increase quality, resulting in an increase in net annual cash flows of $101,486 for the next 6 years. Management requires a 10% rate of return on all new investments. Click here to view PV table. Calculate the internal rate of return on this new machine. (Round answer to 0 decimal places, e.g. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)<\/p>\n<p>Internal rate of return<\/p>\n<p>https:\/\/edugen.wileyplus.com\/edugen\/art2\/common\/pixel.gif<\/p>\n<p>%<\/p>\n<p>Should the investment be accepted?<\/p>\n<p>The investment<\/p>\n<p>https:\/\/edugen.wileyplus.com\/edugen\/art2\/common\/pixel.gif<\/p>\n<p>be accepted.<\/p>\n<p>Exercise 12-8 (Video)<\/p>\n<p>Pierre\u0092s Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $310,000. A new salon will normally generate annual revenues of $68,950, with annual expenses (including depreciation) of $40,000. At the end of 15 years the salon will have a salvage value of $76,000. Calculate the annual rate of return on the project.<\/p>\n<p>Annual rate of return<\/p>\n<p>\u00b7<\/p>\n<p>\u00b7 %<\/p>\n<p>Problem 12-4A (Video)<\/p>\n<p>Jane\u0092s Auto Care is considering the purchase of a new tow truck. The garage doesn\u0092t currently have a tow truck, and the $59,960 price tag for a new truck would represent a major expenditure. Jane Austen, owner of the garage, has compiled the estimates shown below in trying to determine whether the tow truck should be purchased.<\/p>\n<p>Initial cost<\/p>\n<p>$59,960<\/p>\n<p>Estimated useful life<\/p>\n<p>8 years<\/p>\n<p>Net annual cash flows from towing<\/p>\n<p>$7,970<\/p>\n<p>Overhaul costs (end of year 4)<\/p>\n<p>$6,000<\/p>\n<p>Salvage value<\/p>\n<p>$11,990<\/p>\n<p><center><a href=\"http:\/\/onlineclassesguru.com\/orders\/ordernow\"><img decoding=\"async\" src=\"https:\/\/encrypted-tbn0.gstatic.com\/images?q=tbn:ANd9GcTyj99p60XCLyLk1htB7-1neRt8-2QdnenNlQ&usqp=CAU\"target=\"_http:\/\/onlineclassesguru.com\/orders\/ordernow\"\/><\/center><p>","protected":false},"excerpt":{"rendered":"<p>Exercise 12-3 (Video) Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased five years ago at a price of $1.8 million; six months ago, Hillsong spent $55,000 to keep it operational. The existing sewing machine can be sold today for $245,788&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8666","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>ACC 560 HW: Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million - onlineclassesguru<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/onlineclassesguru.com\/index.php\/2020\/11\/18\/acc-560-hw-hillsong-inc-manufactures-snowsuits-hillsong-is-considering-purchasing-a-new-sewing-machine-at-a-cost-of-2-45-million\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ACC 560 HW: Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million - onlineclassesguru\" \/>\n<meta property=\"og:description\" content=\"Exercise 12-3 (Video) Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. 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