engineering economics, Business Economics

2. You recommend spending $10,000 on equipment that will increase sales of your product by $1000 a year and reduce annual operating costs by $800. The equipment has 10-year lifetime, but can be depreciated in three years according to MACRS. Your company uses a 10% interest rate and is the 25% tax bracket.
a. What is the pretax present value of this investment?
b. What is the after-tax present value of this investment?
Posted Date: 9/21/2012 6:22:32 PM | Location : United States







Related Discussions:- engineering economics, Assignment Help, Ask Question on engineering economics, Get Answer, Expert's Help, engineering economics Discussions

Write discussion on engineering economics
Your posts are moderated
Related Questions
Choose one stock from the New  York stock market which has calls and puts available. Extract  the price change for each 3 month period over the last 12 months. Find the current yie

What is the function of the International Monetary Fund, in the promotion of development? The International Monetary Fund (IMF) is the central institution of the international

what factors affect the volume of production in an economy

What is dependency theory? Dependency Theory: Dependency theory uses economic and political theory to describe how the procedure of international trade and domestic deve

QUESTION (a) Explain the relationship between scarcity, choice and opportunity cost. (b) What is market failure and why does it occur in an economy? (c) Differentiate, us

(a) Suppose that the British Pound is quoted at $1.4419-36 and the Swiss Franc is quoted at $0.6250-67. What is the direct quote for the British Pound in Zurich? Note that a direct

to explain in detail how to get five rights in procurement and supply

Describe the terms inflation, deflation, and inflation rate and price stability. Inflation and Deflation: a. An increasing aggregate price level is called as inflation.

QUESTION Write detailed notes on the following: (a) Activist and non activist monetary policy debate. (b) Optimality of Policy Rule compared to discretionary monetary pol

What are the Economies at Different Stages of Development? Economies at Different Stages of Development: • LDCs (Less Developed Countries) share common features but all one