Assuming your opportunity cost of funds is 6 percent which

Assignment Help Financial Management
Reference no: EM131369604

You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. The energy-efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. The standard model has features similar to the energy-efficient model but provides no future saving in electricity costs. It is priced at only $500. Assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase? 

Reference no: EM131369604

Questions Cloud

Explain importance of variation to health-care organization : Explain the importance of variation to health-care organizations and answer the following questions.What might be the key processes for health-care organizations?What are the potential common causes of variation that would have an impact on the key p..
Determine the minimum slope needed : To prevent weeds from growing in a clean earthen-lined canal, it is recommended that the velocity be no less than 2.5 ft/s. For the symmetrical canal shown in Fig. P10.88, determine the minimum slope needed.
Make about the complexity-stakeholders-decision makers : What comments can you make about the complexity, stakeholders, decision makers and required business cases for both initiatives?
How was starbucks able to take a commodity product : How was Starbucks able to take a commodity product and successfully differentiate it to the point where customers would pay seemingly high prices to obtain it - how would you best balance the conflicting needs of the variety of stakeholder groups t..
Assuming your opportunity cost of funds is 6 percent which : You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. The energy-efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity cost..
Probability that a randomly chosen bill is from the east : What is the probability that a randomly chosen bill is from the East?- What is the probability that a randomly chosen bill is either from the Midwest or from the South?
Tension between business line managers and bpm managers : There is sometimes a tension between business line managers and BPM managers. Describe this tension and ways the tension may be used in a positive way to benefit the organization?
Create preliminary allround marketing plan : There is no absolutely correct strategy. Different marketing plans based on either "push" or "pull" marketing strategies will work if executed properly. (Use the textbook appendix to look up "push" and "pull" strategies. It is critical to your ga..
Exception handling programming takes a bit of forethought : Tips: Exception handling programming takes a bit of forethought. Think about ways that you can make your program malfunction while using it (not by changing the code).

Reviews

Write a Review

Financial Management Questions & Answers

  Change in capital structure does not affect risk of debt

The common stock and debt of Northern Sludge are valued at $60 million and $40 million, respectively. Investors currently require a return of 17.0% on the common stock and 7.0% on the debt. If Northern Sludge issues an additional $24 million of commo..

  Capital expenditure or operating expenditure

If Halley Industries reimburses employees who earn master's degrees and who agree to remain with the firm for an additional 4 years, should the expense of the tuition reimbursement be categorized as a capital expenditure or an operating expenditure?

  Evaluate the behavior of the value of stock market

Prepare a graph in excel where present the movement of the value of each action to the period. Indicate therein the areas where change is more drastic and that happened that day that could cause this change.

  Creating a marketing plan for a company

Imagine that you are creating a marketing plan for a company that will sell motor scooters. As you consider the marketing program, what types of strategy should you consider including in the plan? Propose one specific example of each type of strategy..

  Which o?er has the highest present value

Suppose you are selling a used car and there are two potential buyers. Buyer 1 o?ers to give you $3100 today and Buyer 2 o?ers to pay you in installments of $800 once each year for 4 years (with the rest installment paid today). Assuming you do not n..

  Management projects rapid growth

Tre-Bien, Inc., is a fast-growing technology company. Management projects rapid growth of 30 percent for the next two years, then a growth rate of 17 percent for the following two years. After that, a constant-growth rate of 8 percent is expected.

  Risk and return-coefficient of variation

Risk and Return, Coefficient of Variation. Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship:

  How stephanies mortgage financing decisions be different

How would Stephanie's mortgage financing decisions be affected if she were 35 years old? If she were 50 years old?

  The relationship of this to individual and aggregate saving

What are the economic functions that financial intermediaries and markets perform that benefit society? In your answer, discuss the relationships of financial intermediaries and financial markets to the savings investment process within an economy an..

  Nominal rate with interest compounded daily

You plan to invest? $5,000 at the end of each of the next 10 years in an account that has a 9 percent nominal rate with interest compounded daily. How much will be in your account at the end of the 20? years?

  What is its effective gross income

A property has a potential gross rent of $1,500,000; operating expenses of $765,750; a vacancy allowance of $45,000, and other income of $9,000. What is its effective gross income?

  Annuity Payment and EAR

Annuity Payment and EAR You want to buy a car, and a local bank will lend you $10,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 6%, with interest paid monthly. What is the monthly loan payment..

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