Annual maintenance costs for the sprinkler system

Assignment Help Business Economics
Reference no: EM13862636

Eddies precision shop is insured for $700,000. The present yearly insurance premium is $1.00 per $100 of coverage. A sprinkler system with an estimated life of 20 years and no salvage value can be installed for $20,000. Annual maintenance costs for the sprinkler system are $400. If the sprinkler system is installed, the system must be included in shops value for insurance purposes, but the insurance premium will reduce to $0.40 per $100 of coverage. Eddie uses a MARR of 15 percent/year. What's the present worth of this investment? Is the sprinkler system economically justified?

Reference no: EM13862636

Questions Cloud

Oxidation to form formaldehyde and water : A mixture containing 98 mol% methanol and 2 mol% of an inert contaminant is available as a feed to a formaldehyde plant. The fresh feed to a process consists of 1000 kmol/h of this mixture along with 200 kmol/h of oxygen. All of the oxygen is consume..
Franchise owner would like to increase the price : A specific McDonald’s franchise owner is looking at elasticities of Big Macs. E(p)= 2 (Price), E(i)=1 (Income), E(mt)=1.5 (m=Big Mac, t= Taco). The franchise owner would like to increase the price of Big Macs by 6%. If the franchise owner currently s..
Marginal revenue of firm that sells product at price : What is the marginal revenue of a firm that sells a product at the price of $15 and the price elasticity of demand for the product is -2? What is the price elasticity of demand of a firm that sells a product for $20 and marginal revenue is $12? Use t..
Calculate the molar composition of the product stream : A process to produce 1000 kgmol/h acetaldehyde, ethane is fed to the reactor at 1500 kgmol/h and the fractional conversion is 0.8. The product stream contains 2 mol% CO2. Calculate the molar composition of the product stream and the fractional select..
Annual maintenance costs for the sprinkler system : Eddies precision shop is insured for $700,000. The present yearly insurance premium is $1.00 per $100 of coverage. A sprinkler system with an estimated life of 20 years and no salvage value can be installed for $20,000. Annual maintenance costs for t..
The left side of of the mechanical energy equation : The left side of of the mechanical energy equation has three terms: P/p, (1/2)av^2 and gz. show that each of these terms has the dimension of energy per mass of fluid by.... a) converting each term to units of Btu/lbm beginning with pressure in psi, ..
An electron falls from the conduction band of silicon : An electron falls from the conduction band of silicon (Si) to the valence band. The band gap of Si is 1.1 eV. What is the wavelength of the photon emitted by this process? Give your answer in nm
Identical production possibilities frontiers : Assume two economies that have identical production possibilities frontiers. Show how they can still gain from trade if their populations have different tastes. (Graph 2 different sets of indifferent curves to represent the different tastes, then det..
Volkswagen company case : What is the origins of the scandal of Volkswagen? Each Kind of standards US use to control the quality of Volkswagen vehicles?

Reviews

Write a Review

 

Business Economics Questions & Answers

  What is the diamonds water paradox and how is

what is the diamonds water paradox and how is it

  Hypotheses-evidence and conclusions

When Seth told Anita, "Your plan for purr semester project is not going to work." she snapped back with, "I don't hear you coming up with anything better." Identify Seth and Anita's hypotheses, evidence, and conclusions.

  What is the price that suppliers receive

Demand: P=30-2Q Supply: P=4Q Equilibrium Price____ Equilibrium Quantity______ Own Price Elasticity of demand Equlilbrium______ Consumer surplus________ Producer surplus__________ Same market after $6 sales Tax

  How does the severity of crowding out depend on the slope

Considering the market for loanable funds, how does the severity of crowding out depend on the slope of the supply curve?

  Explain the law of demand-what is market equilibrium

Explain the Law of Demand. What are their assumptions? What are demand curve shifters and what causes them to shift? What is market equilibrium? What might keep the market from moving all the way to that equilibrium point? “Price control can be more ..

  Quantity of burgers demanded in equilibrium

Illustrate what is the quantity of burgers demanded in equilibrium.

  Is this higher or lower than the equilibrium interest rate

Describe where the liquidity-demand/money supply equilibrium appears on the graph. Suppose in this period the interest rate is i0. Is this higher or lower than the equilibrium interest rate? Will next period’s interest rate be higher or lower than th..

  Illustrate what is each firm equilibrium output

Illustrate what is each firm's equilibrium output and profit if they behave noncooperatively. Use the Cournot model. Draw the firms' reaction curves and show the equilibrium.

  Price ceiling is not binding

If a price ceiling is not binding, then

  What is anarchy when referring to international relations

What is Anarchy when referring to International Relations? Why is the concept of Anarchy important for understanding the difficulties for international negotiations on environmental issues?

  Net social benefits are maximized when

Net social benefits are maximized when:

  Benefits also costs to the us economy of labor migration

Illustrate what are the benefits also costs to the US economy of labor migration (illegal also legal) into the United States from Mexico.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd