What interest rate must the investment earn

Assignment Help Business Economics
Reference no: EM13818095

1. A research engineer invests $5,000 at the end of every year for a 32-year career. If this teacher wants to have $1,524,240 in savings at retirement, what interest rate must the investment earn?

2. Consider the following two mutually exclusive alternatives (do not consider the “Do Nothing” alternative). Each alternative has a 10-year useful life and no salvage value. If the MARR is 12%, which alternative should be selected? Answer in terms of incremental rate of return analysis

Cash Flow                       A                     B                 B – A

Initial cost                (–$6,000)        (–$9,000)         (–$3,000)

EUAB                         $1,000             $1,500             $   500

3. An engineer has a fluctuating future budget for the maintenance of a particular machine. During each of the first 5 years, $1000 per year will be budgeted. During the second 5 years, the annual budget will be $1500 per year. In addition, $3500 will be budgeted for an overhaul of the machine at the end of the fourth year, and again at the end of the eighth year. What uniform annual expenditure (cost) would be equivalent, if interest is 9% per year?

Reference no: EM13818095

Questions Cloud

Describe the quality issues related to reporting revenue : Describe the quality issues related to reporting revenue. What is the importance of understanding various inventory valuation methods in determining the quality of reported profits?
Economic-analytical consequences for the macro economy : Do you favor tariffs and quotas by the U.S. on international trade? In what circumstances? What kinds of products? And why? Are you concerned about retaliatory tariffs and quotas as a result of our action? Are there economic-analytical consequences f..
What could hr do to ensure a harmonious work environment : What could HR do to ensure a harmonious work environment? What challenges does a manager face in this situation? What approach should a manager take to ensure cooperation rather than resistance? What role does communication play in this scenario?
The texas constitution is widely criticized : The Texas Constitution is widely criticized
What interest rate must the investment earn : A research engineer invests $5,000 at the end of every year for a 32-year career. If this teacher wants to have $1,524,240 in savings at retirement, what interest rate must the investment earn?  Consider the following two mutually exclusive alternati..
International poltical relation : INTERNATIONAL POLTICAL RELATION
Sales commission structure : Create a 3 page sales commission structure (you may use lectures or outside resources for additional help) and decide if you are going to use a progressive plan that increases the percentage of a commission that a representative may receive with e..
Should the antitrust authorities stop more corporate mergers : Should the antitrust authorities stop more corporate mergers  than they currently do? What are some of the pros and cons?
Creating sustainable and effective supply-demand networks : Economists argue that successful business depends on creating sustainable and effective supply and demand networks. If you own (manage) a business, how do you create effective deamnd and effective supply to maximize profit?

Reviews

Write a Review

 

Business Economics Questions & Answers

  Assume that your household gets a machine

Assume that your household gets a machine that cost Lesley provides you with food. Illustrate what would that do to your labor supply.

  Assuming interest rates remain constant for the next

Three $1,000 face value bonds that mature in 10 years have the same level of risk, hence their YTMs are equal. Bond A has an 8% annual coupon, Bond B has a 10% annual coupon, and Bond C has a 12% annual coupon. Bond B sells at par.

  Consumption function

what is the consumption function b. what is the equation of the AE curve c. calculate equilibrium expenditure

  What is the marginal effect of an increase

The demand curve for product X is given by QDx = 220 ? PX + 3PY + 0.001I where PY is the price of a related good Y, and I is income. The supply curve for good X is given by QSX =10+3PX.  What is the marginal effect of an increase in PY on the equilib..

  What is the cost-effective pollution level for each plant

What is the cost-effective pollution level for each plant if total pollution must equal 100? Suppose the city government knows marginal reduction costs at the two plants. In this case, could the city obtain cost-effective pollution reduction using a ..

  Why perfect competition is allocatively efficient

In the argument for why perfect competition is allocatively efficient, the price that people are willing to pay represents the gains to society and the marginal cost to the firm represents the costs to society. Can you think of some social costs or i..

  Enrich understanding of international economics

How can the issue, perspective, concept or model enhance and enrich understanding of International Economics.

  What factors will influence effect of social security system

Use indifference curve analysis to show how the Social Security pension system can reduce annual consumption for some workers who have a strong preference for current versus future consumption.

  Demand and supply curves for gasoline in massachusetts

The government of Mass. decides to impose a tax of $0.75 per gallon on gasoline suppliers in order to fund highway maintenance. Calculate how much revenue is collected by Mass. government? Who bears the greater burden of this tax, consumers or produc..

  Explain impact on economy of government spending on health

Please explain impact on economy of Government spending on Health care on interest rates, investments, employment and income in economy. Please follow sequence in question. Explain how interrelationships.

  Elucidate why chrysler decision might have

Elucidate why Chrysler's decision might have been prompted by movements in its wage costs or capital costs, or both. Why would Chrysler have instituted this production change for its most popular.

  What is the difference between a movement along and shift

What is the difference between a movement along and shift of the demand curve? Show the impact on the equilibrium price and quantity that results from; (1) an increase in demand, (2) an increase in supply, (3) an increase in both 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