Firm purchased some equipment at very favorable price

Assignment Help Business Economics
Reference no: EM131379870

A firm purchased some equipment at a very favorable price of $30,000. The equipment purchased in an annual net savings of $1000 per year during the 8year it was. At the end of 8 years, the equipment was sold for $40,000. Assuming interest did the equipment purchase prove to be desirable?

Reference no: EM131379870

Questions Cloud

Decides to accommodate an adverse supply shock : “If a central bank decides to accommodate an adverse supply shock, it will intensify the inflationary effects.” Comment on this statement with the help of an AD-AS diagram.
Different range of demands for vehicle cleaning : Car Wash Intl. is considering four possible sites for its new operation in Houston area. Based on the information provided below, use break even analysis, plot break-even graph with breakeven points, and recommend best location for different range of..
How is pollution an example of negative externality : How is pollution an example of a negative externality? Explain how negative externalities and, more specifically, pollution often result from a lack of clear property rights.
Monopolistically competitive firm : What is the profit maximizing price, Output? For this monopolistic competitive firm, is the firm earning a profit or loss? Explain. What is the average total cost (ATC)? What is the amount of average revenue (AR)? What is the amount of total revenue,..
Firm purchased some equipment at very favorable price : A firm purchased some equipment at a very favorable price of $30,000. The equipment purchased in an annual net savings of $1000 per year during the 8year it was. At the end of 8 years, the equipment was sold for $40,000. Assuming interest did the equ..
The impact of medicare and medicaid costs : The impact of Medicare and Medicaid costs is expected to be even more important for the future debt of the U.S. than is social security. Where will most of these financial pressures come from? How might they be contained or coped with?
Flexible exchange rates and perfect capital mobility : With the help of an IS-LM diagram, explain the effects of restrictive fiscal policy on the level and composition of output assuming flexible exchange rates and perfect capital mobility.
Find the percentage increase in real GDP : GDP rises from $6 trillion in 1986, the base year, to $18 trillion in 1989. The GDP deflator in 1989 is 200. Find real GDP in 1989. Find the percentage increase in real GDP between 1986 and 1989. Percentage increase in real GDP between 1986 and 1989.
How much they value their leisure time versus work time : People decide how to “budget” their time in much the same way that they decide how to budget for different goods. Each person decides how much they “value” their leisure time versus their work time. How might we model this trade-off economically usin..

Reviews

Write a Review

 

Business Economics Questions & Answers

  What could the fed do in order to bring economy back

What could the Fed do in 2002-2003 in order to bring the economy back to full-unemployment ? What did the Fed actually do? Explain in detail

  Sale of cellphones in the usa represent

What market structure does the sale of cellphones in the USA represent? Why? How has it changed since the monopoly of Ma Bell? Provide examples.

  Different types of procedures in litigation

What is the purpose of having different types of procedures (e.g. pleadings, motions, and discovery) in litigation? Are some procedures more important than others? Do all these procedures just create an atmosphere of gamesmanship in litigation? Do th..

  Total annual consumption vs annual weeks of leisure

A person can chose to work any amount from 0 to 52 weeks per year at a wage of $1000 per week. Draw her annual budget constraint, representing total annual consumption vs annual weeks of leisure.

  External value is tied or pegged to the currency values

If a country's currency's external value is tied or pegged to the currency values of the country's leading trading partners, this arrangement

  Advantage as small business marketer

If you were starting a soap business (laundry soap), what strategy would you use to compete with Procter & Gamble and Clorox ? How would you reach your target market? How and where would you advertise? We talk about the power of word of mouth-how do ..

  What is soroush income elasticity of demand for good

What is Soroush’s income elasticity of demand for Good 1? C. What is Soroush’s income elasticity of demand for Good 2?

  Simultaneous rise-fall in both total and marginal utility

A person who eats a first chocolate from a box of candies, and then a second, and a third, and so on (and nothing else), in an afternoon experiences a: simultaneous rise and fall in both total and marginal utility

  Economy experienced large trade deficits

The U.S. economy experienced large trade deficits in the 1980s and 1990s and tremendous economic growth in the mid- and late-1990s.... Explain verbally the relationship between investment and long-term economic growth and describe the relationship gr..

  Illustrate what is his reservation wage

Assume he takes welfare and does not work. Illustrate what is his reservation wage. He will not lose his welfare if he works.4. Suppose he is working and receives no welfare.

  Describe the law of increasing opportunity costs

Draw the Production Possibilities Frontier (PPF). Suppose that the society produces 20 million tons of food and 8 million tractors per year. Is it operating on the PPF. If not, what factors may account for this? What is the total opportunity cost of ..

  What does this waiting suggest about supply and demand

Sometimes price cuts can have an unintended result of consumers waiting for deeper discounts. What does this waiting suggest about supply and demand?

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