Company is considering new bottle-capping machine

Assignment Help Business Economics
Reference no: EM131379914

A company is considering a new bottle-capping machine. The initial cost of the machine is 300,000 SR and it has a 20 year life. Yearly maintenance cost is estimated to be 15000 per year. The machine required a major overhaul costing 50000 at the end of the tenth year of service? What is the future value of all the cost associated with owning and operating this machine if the interest rate is 8% per year?

Reference no: EM131379914

Questions Cloud

Argument for maintaining positive rate of inflation : Which of the following is NOT an argument for maintaining a positive rate of inflation? Advocates of taxing consumption rather than income argue that. In a perfectly competitive market, the process of entry and exit will end when firms face
Average total cost curve must be tangent to the demand curve : In class is was claimed that at the wealth maximizing output for a price searcher who is making zero (economic) profits, the Average Total Cost Curve must be tangent to the Demand Curve rather than merely be equal to but bisecting the Demand (either ..
What will the magazine publisher do in the long-run : You are a magazine publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $400,000 per month, and you have contractual labor obligations of $1 million per month per the labor union agreement. If the e..
Economists recommend that crime policy : Economists recommend that crime policy have the goal of minimizing the "costs of crime", which include the social costs of the crimes themselves and the social cost of enforcing the criminal law. What is the general rule for determining whether a par..
Company is considering new bottle-capping machine : A company is considering a new bottle-capping machine. The initial cost of the machine is 300,000 SR and it has a 20 year life. Yearly maintenance cost is estimated to be 15000 per year. The machine required a major overhaul costing 50000 at the end ..
Assuming the industry is in long-run equilibrium : Suppose there are ten firms in a monopolistically competitive industry, each with an equal share of the market. The market demand is given as Q = 10200 – P.   Each firm has a total cost function TC = 51000 + 500q2. Assuming the industry is in long-ru..
What will be the future value of your investment : Consider a situation in which you invest 7000 SR per year for 7 year in a bank account that has an annual interest rate of 10%. What will be the future value of your investment?
Short and long-run marginal and average cost curves : How will a tax of $5 per unit produced affect the short- and long-run marginal and average cost curves? What about an annual license fee of $500 per year regardless of production level?
Producer who is attempting to maximize wealth : “A producer who is attempting to maximize wealth (or profit) will never knowingly set their output where the demand for their product is ‘inelastic.’” Refute or prove this statement. Does your answer depend on whether the producer is a price taker or..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Discuss significant trends in both demand and supply

Using data sources from business publications and the Internet, discuss significant trends in both demand and supply in the copper industry that have influenced the price of copper since September 2011. What are the implications of these trends for m..

  Distinguishing between the short-run and the long-run

Insurance agents receive a commission on the policies they sell. Many states regulate the rates that can be charged for insurance. Would higher or lower rates increase the incomes of agents? Explain, distinguishing between the short-run and the long-..

  Which dominant comparative politics theoretical approach

Which dominant Comparative politics theoretical approach might help us understand why US and Britain adopted Presidentialism and Parliamentialism governing systems?

  How much should bond pay you in one year

Suppose current interest rate is 5% and you pay $250 for a bond. How much should bond pay you in one year.

  Explain how the raising of short-term interest rates

Explain how the raising of short-term interest rates would affect all of the following in the United States: the inflation rate, the unemployment rate, the value of the U.S. dollar, net exports, and U.S. stock markets. Include at least one well-label..

  A black market

A black market

  Firm has total fixed costs and constant marginal cost

A monopolistically competitive firm faces the following demand curve for its product: The firm has total fixed costs of $20 and a constant marginal cost of $5 per unit.

  Illustrate what happens to output and the price level

Illustrate what happens to output, the price level, and the expected price level in both the short run and the long run.

  In the long run-if price is less than average cost

In the long run, if price is less than average cost. the market must be in long-run equilibrium. there is profit incentive for firms to enter the market. there is no incentive for the number of firms in the market to change. there is an incentive for..

  Make sure to relate an example for each of the market

Explain the most important characteristic in perfect competition, monopolistic competition, oligopoly, and monopolies and relate the characteristic to how these firms can make profits in the short run

  Q1 tanisha owns one share of ibm stock which is currently

q1. tanisha owns one share of ibm stock which is currently trading at 80. there is a 50 chance that the share price

  Illustrate what conclusions can you draw about similarity

Illustrate what conclusions can you draw about the similarities and differences between the EU and globalization.

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