Considering machine which will have estimated service life

Assignment Help Business Economics
Reference no: EM13889252

Considering a machine which will have an estimated service life of 10 years with a salvage value of 10% of the investment cost. Its expected saving from annual operating and maintenance costs are estimated to be $60,000.To expect a 15% rate of return on investment. What would be the maximum amount that you are willing to pay for the machine?

Reference no: EM13889252

Questions Cloud

Considering luxury apartment building project : You are considering a luxury apartment building project that requires an investment of $12,500,000. The building has 50 unites. You expect that the maintenance cost for the apartment building will be $250,000 in the first year, and to rise to $300,00..
Discuss whether parker breached a contract with donna : Parker & Co., located in New Orleans, offered Donna, a resident of Atlanta, a job as an accountant at a salary of $70,000 a year. Donna accepted. Discuss whether Parker breached a contract with Donna
What was the consequence of the size of the BHP program : How did the experience with experimental programs affect the nature and pace of innovation at EPS and what was the consequence of the size of the BHP program for EPS's decisions?
Planned autonomous investment increases : If the MPC=0.8 and planned autonomous investment increases by $80 billion, then equilibrium real GDP will increase by
Considering machine which will have estimated service life : Considering a machine which will have an estimated service life of 10 years with a salvage value of 10% of the investment cost. Its expected saving from annual operating and maintenance costs are estimated to be $60,000.To expect a 15% rate of return..
The difference between gross and net investment is referred : The difference between gross and net investment is referred to as:
Evaluate the influences of changing economic : Evaluate the influences of changing economic
Consider a project that will bring in upfront cash inflows : Consider a project that will bring in upfront cash inflows for the first two years but require paying some money to close the project in the third year.
What is the cross-price elasticity of demand : If Starbucks raises its price by 6 percent and McDonald’s experiences a 0.6 percent increase in demand for its coffee, what is the cross-price elasticity of demand?

Reviews

Write a Review

Business Economics Questions & Answers

  What is discounted payback period for this investment

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $100,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value..

  Determine the equivalent total present worth

A chemical company determined the need for a chemical additive that will improve their product by 20%. The company’s CEO arranged to purchase the additive through a 5-year contract at $7,000 per year, starting 1 year from now. He expects the annual p..

  Example of sexist language

Which of the following is an example of sexist language?

  If an industrial process emits a pollutant

If an industrial process emits a pollutant, is it more efficient to monitor the amount of pollutant emitted by each firm and establish a tax per unit of pollutant, or to

  Subgame perfect equilibria of the variant of the game

Find the subgame perfect equilibria of the variant of the game in which the post-entry competition is a game in which each firm chooses a price, rather than an output.

  Discuss the implications of the outsourcing of labor

Discuss the implications of the outsourcing of labor for the nation as a whole, and see if you can find an example to cite within the region, where a company or factory has shifted production to Asia or elsewhere overseas.

  What is the profit-maximizing price of e-books relating

The company has determined that it would earn zero economic profits if price were equal to average total cost, and in this case it could sell 20,000 copies. In the short run, what is the profit-maximizing price of e-books relating to do-it-yourself..

  Most likely degree of rivalness and exclusion cost

For each of the following goods, give your best estimate of its most likely degree of rivalness and (relative) exclusion cost, using the definitions of these variables and the information in the course notes on externalities and public goods.

  What is its supply of loanable funds

A country has national saving of $70 billion, government expenditures of $20 billion, domestic investment of $30 billion, and net capital outflow of $40 billion. What is its supply of loanable funds?

  The marginal rate of substitution

The marginal rate of substitution (MRS) determines the rate at which a consumer is willing to substitute between two goods in order to achieve.

  Kyoto protocol on global warming

As a manager, Explain how would you decide Explain how many workers to hire. Illustrate factors might play a role in your decision.

  About the potential benefits and cost of diversification

Economists argue about the potential benefits and cost of diversification. For example while diversification can certainly help company to promote new products at the same time through the merger of two firms it can be more expansive to develop commu..

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