Calculate capital recovery and annual revenue required

Assignment Help Microeconomics
Reference no: EM131004388

1. Jim, the owner of Computers-on-Wheels, an on-site repair service, just purchased a $20,000 diagnostics system and software for PCs, laptops, and LANs. During the expected 5-year life, he determines that the annual recovery amount for this investment is $20,000/5 = $4000.

(a) Explain why Jim has mistakenly underestimated the annual increase needed in revenue.

(b) Determine the required annual revenue increase for a 15% per year return.

2. A 600-ton press used to produce composite- material fuel cell components for automobiles using proton exchange membrane (PEM) technology can reduce the weight of enclosure parts up to 75%. At MARR = 12% per year, calculate (a) capital recovery and (b) annual revenue required.

Installed cost = $-3.8 million n = 12 years Salvage value = $250,000

Annual operating costs = $350,000 to start increasing by $25,000 per year

Reference no: EM131004388

Questions Cloud

Find an explicit expression for each given integral : Without integrating find an explicit expression for each integral. a. 0∫∞e-(s + 5)t dt, b. 0∫∞e-st sin 3t dt and c. 0∫∞ t2e-(s - 2)t dt.
Plot a graph of aw versus interest rate on the spreadsheet : Equipment needed at a Valero Corporation refinery for the conversion of corn stock to ethanol, a cleaner- burning gasoline additive, will cost $175,000 and have net cash flows of $35,000 the first year, increasing by $10,000 per year over the life..
Write summary on the film radical grace : Watch the film Radical Grace and write a two page summary or reflection. It is playing Saturday, March 19th, 2016 at 10pm on CBC News Network
Describe at least two benefits of using enterprise systems : Define a fault-tolerant computer system and a high-availability computer system. How do they differ? When would each be used?
Calculate capital recovery and annual revenue required : Jim, the owner of Computers-on-Wheels, an on-site repair service, just purchased a $20,000 diagnostics system and software for PCs, laptops, and LANs. During the expected 5-year life, he determines that the annual recovery amount for this invest..
Design to evaluate effectiveness of potential intervention : Discuss at least two threats to validity and how you could address these in your evaluation design - Perform a web search to find a measurement tool that you believe would yield the best data for this type of research.
Examine the personality of the main character : After watching the movie Good Will Hunting examine the personality of the main character (Will) through the eyes of first Sigmund Freud and then Carl Jung.
Estimated lives and annual net cash flows vary : Use the PW method at 8% per year to select up to 3 projects from the 4 available ones if no more than $20,000 can be invested. Estimated lives and annual net cash flows vary.
Discuss the merits of the contentions of the parties : Discuss the merits of the contentions of the parties, analyze the outcome(s) and effectiveness of the tactics used by each side, and set forth what alternative actions each side could have pursued to resolve the situation in a better manner.

Reviews

Write a Review

Microeconomics Questions & Answers

  Concerned about the trust customers

Explain why managers should be concerned about the trust customers have in their brand or company and what they can do to build trust.

  Curtin university

In the analyses below, when drawing your diagrams assume that students can choose among only two products on campus, namely tobacco and food.

  Explain what would you conclude is there something else you

part of a business strategy you are considering involves the reduction of labor and material costs. your cfo suggested

  The owner of a fast-food restaurant

You are the owner of a fast-food restaurant. Given a new item that you recently advertised, you experience additional demand for your business that you do not want to ignore. Identify your fixed and variable costs at your fast-food restaurant,..

  How many firm will there be?

without knowly the demand function can we say how much broccoli each firm produces in long run equilibrium? if so under which assumption. if not explain why?

  Considered a cost of unemployment

If the inflation rate is higher than expected, which of the following groups in society would be most probable to gain? Anticipated inflation distorts markets more than does unanticipated inflation. Which of the following is not considered a cost of ..

  If average income increases by 5 by what percentage and in

you are the manager for dunkin donuts and know the following elasticitieseta 1.5eta i 1.2eta xy1 0.5eta xy2 -0.5eta

  Dominated highly with varieties of advertisements

Almost all news media are dominated highly with varieties of advertisements, and people wonder where would modern society be without advertising? Explain briefly, using examples how advertising affects consumer's decision in making choices.

  The income velocity of money

The income velocity of money and the implications for long run monetary policy.

  The goal of promoting economic recovery

Since the beginning of the Great Recession, the Federal Reserve Bank has engaged in expansionary monetary policy (buying US Treasury bonds) with the goal of promoting economic recovery.

  Determine mean median the range and standard deviation of

consider the following sample measurements 5 11 -1 8 2 7 5 1 -10 -6 4 121. determine the mean the median the range and

  Explain what is meant by a cross-price elasticity of demand

The question from Economics is interpreting an article. The article is about food security and the economic plight of some of the developing nations in the world.

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