Candidate should be selected

Assignment Help Business Economics
Reference no: EM13151321

Your first assignment as an engineering technology graduate from the University of Houston downtown is to recommend to management which of two equipment candidates should be selected. The two candidates have the following parameters (MARR = 15% per year): 
Candidate X: useful life of 8 years; estimated market value at end of life of $800; annual running expenses of $400; annual revenues produced of $1,600 and an initial installed cost of $4,500. 
Candidate Y: useful life of 10 years; estimated market value at end of life of $1,200; annual running expenses of $500; annual revenues produced of $1,850 and an initial installed cost of $6,000. 
(a) Given all the above factors, which candidate should be selected? 
(b) By how much would the estimated capital investment for the alternate candidate [the candidate not selected above in (a)] have to vary from your first decision in (a)? 
(c) All other factors being the same except the life of Candidate X, what would be the life of Candidate X if the decision is a tossup, that is, no one Candidate has an economic advantage over the other?

Reference no: EM13151321

Government trade intervention in business periodical

Select a company in your country of origin that is involved in importing and/or exporting, run a thorough research on the company’s business operation. Your goal is to underst

Expected interest rate for the junk bond investment

a. What is the expected interest rate for the junk bond investment? b. Which investment will you choose if your utility function is given by U = (M2)?  c. Which investment wil

Relative purchasing power parity exists

The current spot rate between the UK and the U.S. is £0.6528 per $1. The expected inflation rate in the U.S. is 1.8 percent. The expected inflation rate in the UK is 3.4 perce

Profit maximization not result in sold out game

Your the manager for a college football team. Assume you own the stadium and the variable cost per attendant is $0. You’ve been told by your in-house economist that you should

What is the level of net exports or balance of trade

Suppose a country has total GDP (Y) = $10 trillion, consumption = $7 trillion, government spending = $3 trillion, investment = $2 trillion, and taxes = $1.7 trillion. What is

Self-sufficient system with a circular flow of money

What are the basic institutions which should be at place for the market economy to perform well? 'Once the institutions are at place, market economy works like a self-sufficie

Explain your rationale and support it with specific example

Consider the types of non-tariff trade barriers and determine which has the most detrimental effect on the U.S. economy from the standpoint of the domestic consumer. Explain

About the antitrust laws

Cooperation among oligopolies runs counter to the public interest because it leads to underproduction and high prices. In an effort to bring resource allocation closer to the

Reviews

Write a Review

 
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