Define the before-tax marr

Assignment Help Finance Basics

Reference no: EM131506917

Question: Extended Learning Exercise There are two customers requiring three-phase electrical service, one existing at location A and a new customer at location B. The load at location A is known to be 110 kVA, and at location B it is contracted to be 280 kVA. Both loads are expected to remain constant indefinitely into the future. Already in service at A are three 100-kVA transformers that were installed some years ago when the load was much greater. Thus, the alternatives are as follows: Alternative A: Install three 100-kVA transformers (new) B now and replace those at A with three 37.5-kVA transformers only when the existing ones must be retired. Alternative B: Remove the three 100-kVA transformers now at A and relocate them to B. Then install three 37.5-kVA transformers (new) at A.

Data for both alternatives are provided in Table. The existing transformers have 10 years of life remaining. Suppose that the before-tax MARR = 8% per year. Recommend which action to follow after calculating an appropriate criterion for comparing these alternatives. List all assumptions necessary and ignore income taxes.

Reference no: EM131506917

Questions Cloud

Should the new equipment be leased : A manufacturing company has some existing semiautomatic production equipment that it is considering replacing. This equipment has a present MV of $57,000.

What would you recommend for the given data : Five years ago, a company in New Jersey installed a diesel-electric unit costing $50,000 at a remote site because no dependable electric power.

Critically discuss the horizontal effect in both the cases : Use the case of Laval and Viking. Critically discuss the horizontal effect in both the cases and freedom to provide services and freedom to establish

Describe the rising needs for contingency planning : In addition, describe the rising needs for contingency planning at the federal, state, and local level for projected crises scenarios.

Define the before-tax marr : Extended Learning Exercise There are two customers requiring three-phase electrical service, one existing at location A and a new customer at location B.

Explain in detail why you believe the risk management : Explain in detail why you believe the risk management, control identification, and selection processes are so important, specifically in this organization.

Briefly discuss the four elements of the tort of negligence : State and briefly discuss the four elements of the tort of negligence. Evaluate whether New York Bank would be liable for negligence

Describe marketing in terms of differentiation : Take a company you know well. Describe their marketing in terms of Differentiation, Commoditisation and how to cope with it

Negligible amounts of cash and marketable securities : Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover.

User Account

All Pages