Sorting machine that is expected to produce return

Assignment Help Business Economics
Reference no: EM131092936

The Dominion Freight Company has invested $50000 in a new sorting machine that is expected to produce a return of $7500 per year for next 10 years. At a 7% annual interest rate, is this investment worthwhile?

Reference no: EM131092936

Questions Cloud

Non renewable resources important to the global economy : Land is a resource that has largely been misused and taken for granted. Land is continually improperly utilized. Obviously, the supply of land is fixed. Because of this fact, economists refer to land as producing economic rent. Why is the proper use ..
Were you aware of the caste system : Were you aware of the Caste System? What is your reaction - thoughts? Can you think of a similar situation in other countries? This is more a sociology question.
Define the annual worth of this investment : A car is financed as follows: $2,000 as a down-payment plus equal monthly payments at 8% annual interest rate compounded monthly for 3 years. Original price of the car was $14,500. It is expected that maintence costs are going to be $400 in the first..
Discuss how the program would be implemented : Describe the program in the context of the two (or more) conditions that you previously selected. Explain why you believe this program will be effective by drawing on research concerning prejudices.
Sorting machine that is expected to produce return : The Dominion Freight Company has invested $50000 in a new sorting machine that is expected to produce a return of $7500 per year for next 10 years. At a 7% annual interest rate, is this investment worthwhile?
Compute a competitive equilibrium : Economics 714 Macroeconomic Theory Spring 2016 - Problem Set 1. Let the Pareto weight on consumer 1 be λ ∈ (0, 1) and the weight on consumer 2 be 1 - λ. Compute the Pareto optimal allocation. Define a competitive equilibrium for this economy (with tr..
Which method would result in the higher pretax income : FIFO and LIFO, which method would result in the higher pretax income? FIFO and LIFO, which would result in the higher EPS? FIFO and LIFO, which method would result in the lower income tax expense? Assume a 30 percent average tax rate.
What return did they really earn on their investment : A good stock-based mutual fund should earn at least10% per year over a long period of time. Consider the case of Barney and Lynn, who were overheard gloating about how well they had done with their mutual fund investment. We turned a $10000 investmen..
Consider the simplified national income model : Consider the simplified national income model: Determine the equilibrium level of national income (Y) and consumption (C) by using the matrix (linear) algebra only. Determine the overall change (comparative statics analysis) of the equilibrium level ..

Reviews

Write a Review

Business Economics Questions & Answers

  Utilize price elasticity of demand for maximum total revenue

What is price elasticity of demand when price increase from $3 to $4 and Qd decrease from 90 cups to 70 cups as the price of tickets rise from $200 To $250, what is the price elasticity of demand for a) business travelers and b) vacationers? use midp..

  Find the equal annual payment series

Find the equal annual payment series that would be equivalent to the following increasing series of payments if the interest rate is 12%.

  Consumers income increases

Assume we are examining the market for luxury automobile in the USA. In separate graphs, graph what occurs when each of the following happens For each graph explain what is happening and why. Consumer’s income increases.

  Should our evaluation of one lifetime of hard work

No security leaks had been found In accepting  Piraeus resignation President Obama praised Piraeus leadership during the Iraq and Afghanistan wars and said By any measure through his lifetime of service David Petra us has made our country safer and s..

  Elementary school quality from residential property values

The table on federal income tax rates facing various income groups suggests that the marginal tax rate in the United States has fallen. What would be your prediction as to how this decline in marginal tax rates could affect the quantity of Labor supp..

  What is the present worth for each scenario

Define optimistic, most likelys, and pestimistic scenarios buy using both optimistic, both most likely and both pestimistic estimates. Use a life of 4 years as the most likey value. What is the present worth for each scenario

  Airlines operate networks or hub-and-spoke systems

Most large airlines operate networks, or hub-and-spoke systems, which connect many spoke cities (or nodes) with flights to and from a hub airport. A network carrier serves 39 spoke cities from a single hub. How many city-pairs does it serve? How can ..

  As a currency appreciates

As a currency appreciates:

  Qfederal reserve notes in circulation850money market mutual

q.federal reserve notes in circulation850money market mutual funds mmmfs held by individuals400corporate bonds300iron

  Units of clothing without specialization or trade

Review the following graph. If Mexico produces 300 million tons of food, it can produce _________ million units of clothing without specialization or trade. Each ton of food in Mexico has an opportunity cost of __________ units of clothing. image Cli..

  Which equals profits-plus net effects of any taxes-subsidies

For the purpose of these exercises, let the firm's profits be given by P(x) = 20x - x^2, and let damages be given by D(x) = 2x^2. Producer surplus, which equals profits, plus the net effects of any taxes, subsidies, or side-payments agreed to under t..

  Model when the production function-improvement in technology

Consider Solow's model when the production function is Y = 1000K0.3 L0.7 . The population growth rate is 2%, ? = 0.1 is the depreciation rate and s = 0.25 is the savings rate. Suppose this economy was in its steady state when unexpectedly Total Facto..

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