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
Problem (a) What do you meant by Contract Management and what is the central aim of contract management? (b) Show the end-of-contract options and describe the cost involve

Tasks "Accounting standard setting is a political lobbying process, and as such offers various Opportunities and means for interested parties to affect its outcomes." Require


QUESTION No point is better accepted than the fact that the monopoly price is higher and the output smaller than what is socially ideal. The public is the victim. (a) Distin

A1. Given the following production function Level of fertilizer Level of maize 0 0 1 44.9 2 83.6 3 110.1 4 127.3 5 136.9 6 139.9 7 137.1 8 129.2 a) Calculate the APP, MPP and elas

Describe the difference between value management and value engineering. Value Engineering: It is concerned all along with determining the cheapest method of accomplishing

Oligopolistic Competition: Two rms are competing for consumers. They simultaneously decide what quantity to produce. Suppose they have identical cost c, zero xed cost and fa

Find quantity supplied and quantity demanded: Suppose there are 300 used cars, with 3 quality levels: bad, medium, and good.  A seller knows the quality of his car but a buyer

Why do you assume there are an increasing number of organisations related along with the development of quality practices for IS development? Information systems frequently rep

Question: Yamba Home Products is just beginning its fourth quarter, in which peak sales occur. The company has requested a $12,000, 90-day loan from its bank to help meet cash