Compare the present value with the equipment cost

Assignment Help Business Economics
Reference no: EM13830004

1. You have borrowed $50,000 at an interest rate of 12%. Equal payments will be made over a three-year period. The first payment will be made at and of the first year. What will be the annual payment be?

2. You are considering buying a piece of industrial equipment to automate a part of your production process. This automation will save labor costs by as much as $35,000 per year over 10 years. The equipment will cost $200,000. Should you purchase the equipment if your interest rate is 12%? (Hint: compare the present value with the equipment cost to see a cheaper way)

Reference no: EM13830004

Questions Cloud

What effective interest rate should be used for semiannual : What effective interest rate should be used for a semiannual (twice per year) payments with an APR=15% compounded weekly? Show all your work
What will unboxing do with null values : Java Question: Whatwill unboxing do with null values?
A method and using a synchronizedblock : What'sthe difference between synchronizing on a method and using a synchronizedblock?
What is the function of and where do you find epithelial : What Is The Function Of And Where Do You Find Epithelial Tissues
Compare the present value with the equipment cost : You are considering buying a piece of industrial equipment to automate a part of your production process. This automation will save labor costs by as much as $35,000 per year over 10 years. The equipment will cost $200,000. Should you purchase the eq..
What is the purpose of public , protected keywords in java : What is the purpose of public , protected keywords in java?
Write a summary on article why chinese mothers are superior : The problem is an article summary about Amy Chua's "Why Chinese Mothers are Superior". The article written by Amy Chua about traditional Chinese parenthood.
Computes the salaries for a collection of employees : The first programming project involves writing a program that computes the salaries for a collection of employees of different types. This program consists of four classes. The first class is the Employee class, which contains the employee's name and..
Describe how industry will adjust in the long run : A monopolistically competitive firm is operating in the short run, is operating at the optimal level of output, and is earning positive economic profits. Describe how this industry will adjust in the long run.

Reviews

Write a Review

 

Business Economics Questions & Answers

  Produce output according to the production function

A firm uses labor and machines to produce output according to the production function f(L, M) = 4L^1/2 M^1/2 , where L is the number of units of labor used and M is the number of machines. The cost of labor is $40 per unit and the cost of using a mac..

  What is total cost at profit-maximizing quantity of output

if the price is greater than the average variable cost and less than the average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm.

  One firm in an industry significantly

Under oligopoly if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.

  How company is the low-cost provider of these boxes

How company is the low-cost provider of these boxes with fixed cost of $480,000 per year, plus variable cost of $30.00 for each box. Annual demand and marginal revenue functions for the company are.

  Solow model-what would happen to consumption

In Solow model, what would happen to consumption (the difference between output and savings) if: - there is an increase in saving (investment)- there is an increasing in population.

  Explain why airlines might be more likely to match price

explain why airlines might be more likely to match price cuts than price increases. (b) Which theory of oligopolistic behavior does the above situation most resemble?

  United states trades

The terms of trade if the united states trades 1 can of soda for 5 units of clothing.

  Traditional open market purchases of treasury securities

etween February 2008 and Summer 2009 the Fed supplemented its open market operations with a greatly expanded program of direct lending (both overnight and short term 28 and 84 day loans) to commercial banks, investment banks, brokerage and primary de..

  What rate of return would you expect on a year treasury

What rate of return would you expect on a 1 year treasury security, assuming the pure expectation theory is valid? use arithmetic average.

  Illustrate what was the impact on the supply and demand

Illustrate what was the impact on the supply and demand of labor on one sector of the labor market. Explain the factors that affected labor demand and labor supply in the chosen historical example.

  Market demand function

The market demand function for corn is Qd = 15 - 2P and the market supply function is Qs = 5P - 6, both measured in billions of bushels per year. Suppose the government wants to raise the price to $4 per bushel. Describe both graphically and algebrai..

  Sensors based on capacitive sensing technology

Loadstar Sensors is a company that makes load force sensors based on capacitive sensing technology. The company wants to have $47 million for a plant expansion 6 years from now.

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