Piece of manufacturing equipment for additional income

Assignment Help Business Economics

Reference no: EM131424802

A company purchased a piece of manufacturing equipment for an additional income. The expected income is $3,500 per semester. Its useful life is 9 years. Expenses are estimated to be $500 semiannually. If the purchase price is $34,000 and there is a salvage value of $4,500, what is the prospective rate of return(IRR) of this investmant? The MARR is 10% compounded semiannually.

Reference no: EM131424802

Questions Cloud

The real rental on land and the real rental on capital : Holding the price of manufacturing constant, suppose the increase in the price ofagriculture is 10% and the increase in the wage is 5%. Determine the impact of the increase in the price of agriculture on the rental onland and the rental on capital. E..

Great costs when they perceive that threat of humiliation : When face wants are not addressed during interaction, one or both of the parties may experience a loss of face. People are said to lose face when they are treated in such a way that their identity claims are challenged or ignored. Not surprisingly, r..

How will you communicate with your customers : One difficulty of moving a small business from a traditional retail store to an online store is channel complications. In many cases, everything has to be reconsidered. For example, how will you communicate with your customers? How will they find pro..

Suffered several weather-related disasters in recent years : The United States has suffered several weather-related disasters in recent years, including Hurricane Katrina, Superstorm Sandy, and numerous devastating tornados and floods. Why, then, doesn’t the Federal government simply order the Bureau of Printi..

Piece of manufacturing equipment for additional income : A company purchased a piece of manufacturing equipment for an additional income. The expected income is $3,500 per semester. Its useful life is 9 years. Expenses are estimated to be $500 semiannually. If the purchase price is $34,000 and there is a s..

After-tax equilibrium price and quantity in the corn market : Let market supply be Q=10.2+0.25p and market demand be Q=15.6-0.5p Algebraically solve for the? after-tax equilibrium price and quantity in the corn market if a specific tax of t=?$2.10 is applied to customers. The? after-tax equilibrium price is p=?..

Super neutrality and changes in money growth : “Super Neutrality” and Changes in Money Growth in the RBC Macro Model. Consider the basic flexible-price, market-clearing model (which satisfies the Classical Dichotomy) in which r and Y are constant as long as there are no shocks to preferences or t..

Create a second subroutine : Create a second subroutine, called HW_COST, that determines the cost of a customer’s order using the hardware multiplier. The parameters (Items and Cost) should be passed to the subroutine using the stack and the result should be stored in R14.

What is the demand for money when interest rates are zero : Suppose that money demand is given by Md = $Y(0.25 - i) as long as interest rates are positive. The questions below then refer to situations where the interest rate is zero. What is the demand for money when interest rates are zero and $Y = 80? Once ..

User Account

All Pages