What was cost the year before installation of transducers

Assignment Help Econometrics
Reference no: EM13219109

Ford Motor Company was able to reduce by 80% the cost required for installing data acquisition instrumentation on test vehicles by using MTS-developed spinning wheel force transducers.

(a) If this year's cost (i.e., end of year 1) is expected to be $2000, what was the cost the year before installation of the transducers?

(b) If the costs are expected to increase by $250 each year for the next 4 years (i .e., through year 5), what is the equivalent annual worth of the costs (years 1 through 5) at an interest rate of 18% per year?

Reference no: EM13219109

Questions Cloud

Explain family-oriented benefits : Explain some of the legal constraints on background investigation of applicants to include the following: Explain Family-oriented benefits including the followiing:
Who should specialize in studying and who in working : Suppose a second individual has the following tradeoffs between income and grades: TotalHours/Hours Studying/GPA/Hours Working/Income 60 50 4.0 10 $60 60 40 3.0 20 $120 60 20 2.0 40 $240 60 10 1.0 50 $300 60 0 0.0 60 $360
Determine the distribution of the number of customers : Determine the distribution of the number of customers waiting in the queue.
Managerial skills needed to communicate : how do you instill zn appreciation in your trainees of the managerial skills needed to communicate in a multicultural organization?
What was cost the year before installation of transducers : Ford Motor Company was able to reduce by 80% the cost required for installing data acquisition instrumentation on test vehicles by using MTS-developed spinning wheel force transducers. (a) If this year's cost (i.e., end of year 1) is expected to be..
Calculate the electron : A new semiconductor has Nc = 1019 /cm3 and Nv=5 x 1018, and Eg = 2eV. If it is doped with 1017 donors (fully ionized), calculate the electron, hole, and intrinsic carrier concentrations at 627K.
What instruction is used to change the opacity : In animation programs, special effects are achieved by changing the properties of objects. What instruction is used to change the opacity and color properties of objects in the Zeus example world?
Create a cron file that will regularly perform : Create a cron file that will regularly perform the following backups:?
Compute the real interst rate for the loan : John Smith bought a house for $100,000 two years ago. The down payment was $20,000 and the remainder was financed at 6%interest ratefor 15 years. The annual inflation rate for the past 2 years has been 2% and it is anticipated.

Reviews

Write a Review

Econometrics Questions & Answers

  How much will be changes in mr smiths consumption

Mr. Smith has a weekly income of M = $24. Initially the prices of X and Y are both $2/unit and Mr. Smith buys 6 units each of X and Y each week, a bundle on indifference curve I0. Then, ceteris paribus, the price of X increases to $4/unit, with th..

  What are the chances that the license will be issued

Sigma Petroleum, has an option to purchase 1 million barrels of crude oil for $50/barrel. You estimate that you will be able to realize $80/barrel after importing and processing the crude oil from an offshore field through FPSO.

  What would have been the average growth rate

What term would economists use to describe what happened in year 3  Expansion OR Recession If the growth rate in year 3 had been a positive 5 percent rather than a negative 2 percent, what would have been the average growth rate

  Calculate the cost of equity capital to this firm

The MacBurger Company, a chain of fast food restaurants, expects to earn $200 million after taxes for the current year. The company has a policy of paying out half of its net after tax income to the holders of the company's 100 million shares of c..

  Ow much tax will the government raise

Suppose the government imposes the following kind of sales tax: there is no tax for selling the first 35 units, but for selling every uinit beyond the thirty-fifth unit, the seller has to pay the government an additional $12. What is the new optim..

  Find the inverse demands faced by the two firms

where a > 1. In addition assume that the firms target own profit maximization, compete (simultaneously) in quantities and have marginal costs equal to c1 = c2 = c. Assume that 1 > c > or equal to 0. Describing the necessary mathematical steps, an..

  What is the present worth of the extra cost over a year

If the incremental cost of the sequestration process is $.019 per kilowatt-hour, what is the present worth of the extra cost over a 3 year period to manufacture plant that uses 100,000 kWh of power per month, if the interest rate is 12% per year c..

  Calculate output and price at revenue maximizing activity

Commercial Recording, Inc., is a manufacturer and distributor of reel-to-reel recording decks for commercial recording studios. Revenue and cost relations are: TR = $3,000Q - $0.5Q2 MR = $3,000 - $1Q TC = $100,000 + $1,500Q + $0.1Q2 MC = $1,500 + ..

  Explain why should al refinance the loan

when he purchased his home, al silva borrowed $280,000 at 10% interest to be repaid in 25 equal end-of-year payments. After making 10 payments, Al found he could refinance the balance due on his loan at 9% interest for the remaining 15 years.

  How much does the second annuity pay each year

The applicable discount rate is 7 percent. One annuity pays $4,000 on the first day of each year for twenty years. How much does the second annuity pay each year for twenty years if it pays at the end of each year.

  What will be the growth rate of per capita income

Consider Romer's model of endogenous growth. a). Suppose first that the production function is as follows: where f = 0.1 and f = 0. Using the equation in the text, what will be the growth rate of per capita income. what will be the growth rate of per..

  Which of the coefficients are statistically significant

Chez Henri is a restaurant chain that operates in 40 different cities. It hired an economist to estimate the factors affecting the demand for its sales. The following equation was estimated using cross sectional data from each of its 40 restaurant..

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