Rate of return on his other business ventures

Assignment Help Business Economics

Reference no: EM131161530

A carwash dryer is purchased for $150,000 and is expected to last ten years but have no salvage value. Although it takes $15,000/year to maintain, it will generate $50,000/year revenue. Joe DePlumma, the owner, can make an 18% rate of return on his other business ventures and so that is his MARR. If Joe’s combined income tax rate is 40% and he uses straight line depreciation over ten years, state here on Blackboard the net present worth (NPW), to the closest dollar, of the dryer to Joe when the taxes are considered. Based on that NPW, state here on Blackboard whether or not Joe should invest in this dryer?

Reference no: EM131161530

Questions Cloud

Estimated effort inperson-months : You are in charge of developing a 67-KDSIembedded product that is nominal except that the database size israted very high and the use of software tools is low. Using intermediate COCOMO, what is the estimated effort inperson-months?

Ways that a manager can cope with any negative emotions : Propose three (3) ways that a manager can cope with any negative emotions that may accompany an employee layoff. Describe a step-by-step process of conducting the dismissal meeting

Discuss the evolution of labor relations and human resources : Discuss some employer tactics used to prevent or minimize union membership growth prior to the passage of the National Labor Relations (Wagner) Act in 1935. Which, if any, of these tactics would be lawful today?

Question on projectile motion : A 124-kg balloon carrying a 22-kg basket is descending with a constant downward velocity of 11.1m/s A 1.0-kg stone is thrown from the basket with an initial velocity of 12.8m/s perpendicular to the path of the descending balloon, as measured relat..

Rate of return on his other business ventures : A carwash dryer is purchased for $150,000 and is expected to last ten years but have no salvage value. Although it takes $15,000/year to maintain, it will generate $50,000/year revenue. Joe DePlumma, the owner, can make an 18% rate of return on his o..

Circular orbit about a planet : A 50.0-kg satellite is in a circular orbit about a planet. The potential energy of the orbit is -4.00 × 107 J. Whatis the speed of the satellite? Answer is 894m/s

Perform a logarithmic regression of expenditure : Perform a common factor test. If the AR(1) model is rejected, and there are terms with insignificant coefficients in the second regression, investigate the consequences of dropping them.

Wavelength of the light in vacuum : Light with a frequency of 5.50×1014 Hz travels in a block of glass that has an index of refraction of 1.56. What is the wavelength of the light in vacuum?

How these techniques be used to deliver effective training : Conduct research to identify techniques for maintaining participant interest in training. List a minimum of three specific techniques not found in the Blanchard and Thacker (2013) text and give a short explanation of each. Explain how these techni..

User Account

All Pages