How much revenue would have to be realized each year

Assignment Help Finance Basics
Reference no: EM13269046

A machine is purchased for $36,000 and will have a market value (salvage value) of $8,000 at the end of its 8 year useful life. If MARR= 9%, how much revenue would have to be realized each year to recover the cost of capital?

$4,000
$5,779
$7,199
$6,962

Reference no: EM13269046

Questions Cloud

How to set up the null and alternative hypothesis to test : Let p represent the true portion of unauthorized uses of business websites in 2008 that came from inside the company. (a) Calculate a point estimate for p. (b) Set up the null and alternative hypothesis to test whether the value of p differs from ..
Explain why distribution and supply chain management : Explain why distribution and supply chain management are critical to achieving a sustainable competitive advantage and true differentiation in the marketplace. How are these issues related to other elements of the marketing program in determining com..
Find the force between two rods : Two identical rods each of length L and charge Q are perpendicular to each other and separated by a distance D, Find the force between them
Define what was the initial concentration : A zero-order reaction has a constant rate of 2.40×10?4 M/s. If after 45.0 seconds the concentration has dropped to 2.00×10?2 M , what was the initial concentration
How much revenue would have to be realized each year : A machine is purchased for $36,000 and will have a market value (salvage value) of $8,000 at the end of its 8 year useful life. If MARR= 9%, how much revenue would have to be realized each year to recover the cost of capital?
Find the value of the boundary of the critical region : A consumer products company is formulating a new shampoo and is interested in foam height (in mm). Foam height is approximately normally distributed and has a standard deviation of 20 mm. The company wishes to test H0 : l = 175 mm
Increase data security : What issues need to be considered when planning an information systems project to increase data security? What strategies can be used to increase data security?
At what value should the warranty level be set : The operational life of magnetic disks can be modeled by a Weibull distribution. Consider the following data that represent the life of packaged magnetic disks exposed to corrosive gases (in hours): 4, 86, 335, 746, 80, 1510, 195, 562, 137 1574, 7..
Understand the difference between a professional bodies : Get a real world understanding of how codes of ethics/ conduct /behaviour impact individuals in their career -  difference between a professional bodies code and expectation of their members and the member's expectations and actions

Reviews

Write a Review

Finance Basics Questions & Answers

  Write the total demand equation from the equations above

How much more profit can be made by using the two price strategy in your answer to question 3?

  Calculate the break-even salvage

A project in Malaysia costs $4,000,000. Over the next three years, the project will generate total operating cashflows of $3,500,000, measured in today's dollars using a required rate of return of 14 percent

  Roles of international financial institutions

Would you please define the roles of international financial institutions (e.g. IMF, World Bank, ADB, etc.) and explain how they are used in global financing operations as well as describe their importance in managing risks.

  What about the continously compounded rate of change

what do you think the stock price will range with a 95% probability over the next two months? what about the continously compounded rate of change in the stock price?

  Explain the fact that their roe is about 12 percent

It is widely known that grocery chains have low profit margins-on average, they earn about 1 percent on sales. How would you explain the fact that their ROE is about 12 percent? Does this seem logical?

  What is the new after-tax cost of debt

The yield to maturity on the new issue will be the same as the yield to maturity on the old issue because the risk and maturity date will be similar.

  Calculate the npv of going directly to market now

Required: (a) Calculate the NPV of going directly to market now. (Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars. (e.g., 1,234,567)) NPV $ (b) Calculate the NPV of test marketing first.

  What was the capital gains yield

Suppose a stock had an initial price of $80 per share, paid a dividend of $1.35 per share during the year, and had an ending share price of $87. What was the capital gains yield?

  What about the norminal rate

If the expected rate of inflation suddenly rises to 8.9%, what does the Fisher theory say about the real interest rate will change?

  Expected return and standard deviation for portfolio

Compute the expected return and standard deviation for portfolio if Diane borrows the extra $1000 at risk free rate of 4% and invest everything in market portfolio.

  A firm whose equity has a beta of 1.0

A firm whose equity has a beta of 1.0

  Significant differences between fasb and iasb

Describe the most significant differences between the FASB and the IASB. Compare and contrast the conceptual frameworks of the IASB and FASB. Discuss which conceptual framework is more coherent or relevant or applicable and explain why.

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