Determine which of the two machines should be selected

Assignment Help Econometrics
Reference no: EM13243834

Determine which of the two machines should be selected, using an AW-based rate of return analysis, if the MARR is 18% per year. The semi-automatic machine has a first cost of $40,000, an operating cost of $100,000 per year, and a salvage cost $5,000 at the end of its 2 year life. The automatic machine has a first cost of $90,000, an operating cost of $95,000 per year, and a salvage value of $7,000 at the end of its 4 year life.

Reference no: EM13243834

Questions Cloud

Determine the annual profit or loss if units are sold : The fixed costs at Harley Motors are $1 million annually. The main product has a revenue of $8.50 per unit and $4.25 variablecost. Determine (a) the break-even quantity per year, and (b)the annual profit or loss if 200,000 units are sold and if 35..
Compute the wacc for the financing scenario : Tiffany Baking Co. wants to arrange for $50 million in capitalfor manufacturing a new consumer product. The currentfinancing plan is 60% equity capital and 40% debt financing. Compute the WACC for the following financing scenario:
Determine if the dam should be constructed : The U.S. Army Corps of Engineers is considering the feasibility of constructing a small flood control dam in an existing arroyo. The initial cost of the project will be $2.2 million, with inspection and upkeep costs of $10,000 per year.
How will each of the affect the supply for insurance : How will each of the following affect the supply for insurance?
Determine which of the two machines should be selected : Determine which of the two machines should be selected, using an AW-based rate of return analysis, if the MARR is 18% per year. The semi-automatic machine has a first cost of $40,000, an operating cost of $100,000 per year
Depict a sigma only mo diagram for a generic : Draw a sigma only MO diagram for a generic ML6^n- complex. Label all atomic and molecular orbitals with their proper symmetry designations. Which orbitals are nonbonding and why
Explain the acid dissociation constant for formic acid : At 25C the acid dissociation constant for formic acid is 6.9x10-4. Calculate DG for this reaction. R=8.31x10-3 kj/K) Can you please help me work this problem.
Solve the problem on a present worth basis : If i = 8%, determine the B/C ratio. Solve the problem on a present worth basis and the on anannualized basis.The cost and benefits for a proposed dike flood control systemare as follows: Capital cost of dike= $1,040,000
What is the speed of the waves on the string : The force stretching the D string on a certain guitar is 170 N. The string's linear mass density is 0.006 kg/m, What is the speed of the waves on the string

Reviews

Write a Review

Econometrics Questions & Answers

  Consumer price index calculation

The agency of Labor Statistics follows 5-steps to calculate Consumer Price Index. Determine three strengths and three weaknesses of the Consumer Price Index calculation.

  Determine the capitalized cost of a series of cash flows

Determine the capitalized cost of a series of cash flows starting at the end of the first year with $400 and increasing at the rate of $100 for the next 5 years. The series of cash flows from year 1 to 6 repeats forever. MARR= 6%

  Determine what is the critical value of testing the claim

A hypothesis will test that two population means are equal. A sample of 10 with a standard deviation of 3 is selected from the first population and a sample of 15 with a standard deviation of 8 from the second population.

  What is the owenership cost of the vehicle

Susan is considering buying a 2011 Smart ForTwo costing $21,635 and finds that the retaining values of the vehicle over next five years are as follows: Percent of the total value retained after 36 months: 28% Percent of the total value retained aft..

  Calculate the marginal opportunity cost of each combination

Suppose a second nation has the following data. Plot thePPC, and then determine which nation has the comparative advantagein which activity. Show whether the two nations can gain fromspecialization and trade.

  Where is the economy operating relative to its potential gdp

(Natural Rate of Unemployment) What is the relationship between potential output and the natural rate of unemployment If the economy currently has a frictional unemployment rate of 2 percent, structural unemployment

  Predictable performance cycles for walmart

Are there any predictable performance cycles for Wal-mart? If so, what are the periods over which its cycle waxes and wanes?

  Determine the equilibrium price and quantity

In a given marker, demand is described by the equation QD=1800-10P and supply is described by QS=200+10P. A. Determine the equilibrium price and quantity. B. Determine the surplus or shortage that would exist if the price was set at $60 by the state.

  How much will deposits in the commercial banks change

The Federal Reserve has just purchased $100 million in Treasury bills from commercial banks. b. If the public holds a fixed amount of currency (so that all loans create an equal amount of deposits in the banking system), the minimum reserve ratio ..

  Is the new tangency point also the firms new equilibrium

Suppose the price of Labor is $50 a day and the price of capital is $100 per day. Draw the iso-cost curve if the firm chooses to spend $10,000 a day. Add an isoquant tangent to the iso-cost at 120 units of labor.

  Calculate the equivalent present worth deposit

A 10 year series of $10,000 annual deposits is followed by 10 more annual deposits of $20,000, which is followed by 20 more years at $30,000 per year. For the total 40 year period, calculate the equivalent present worth deposit as well as the bala..

  Determine profit-maximizing amount of electricity to produce

Q1 kilowatts are produced at facility 1, and Q2 kilowatts are produced at facility 2 (so Q = Q1 + Q2). The costs of producing electricity at each facility are given by C1(Q1) = 8,000 + 6Q12and C2(Q2) = 6,000 + 3Q22, respectively. Determine the pro..

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