100% Original, Plagiarism Free, Tailored to your instructions

Order Now!

BFC 2140-Right Drive Tyres Ltd has just completed a $20,000

Please provide all the working and equations for understanding.Right Drive Tyres Ltd has just completed a $20,000 feasibility study into automated machines and is now considering the replacement of a manually operated machine with a fully automated one. Currently, the manual machine needs three full time operators to operate it, costing the company $150,000 in wages annually. Maintenance costs for the manual machine are $18,000 per year. The machine was purchased seven years ago at a cost of $180,000 and at the time was expected to run for a life of ten years before being scrapped. It is being depreciated straight line. However, if Right Drive Tyres were to sell the machine at the current market price today it will get $45000.The automated machine will cost $450,000 to purchase with further shipping and installations costs of $40,000. The automated machine costs more to maintain at $24000 per year, and will reduce the cost of defects from $12,000 per year for the manual machine to $2,000 per year. The new machine will be depreciated straight line over its expected life of seven years, with an expected salvage value of $25000. The manual machine can run for another seven years, but will need an overhaul at the end of the third year at a cost $75,000 that can be expensed for tax purposes at that time. The adoption of an automated machine means that we need to source additional inventories, hence net working capital adjustments of $15,000.The corporate tax rate is 30%. Assume a cost of capital of 15% for discounting purposes.Required:a) Calculate the relevant cash flows either on an isolation or incremental basis.b) Calculate the NPV and IRR of the project and advise whether the company should replace the manual machine.

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

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

Get 10% Off on your 1st order!