Two companies are interested in purchasing the land

Assignment Help Operation Management

Reference no: EM13902880

Your company owns a large parcel of land in a neighboring city that you have no use anymore. Two companies are interested in purchasing the land. Company A has offered you $20,000 per year for 20 years for the land. Company B offers that in addition to the 20 equal $20,000 payments, it can pay an additional $10,000 six years from now and an additional $15,000 16 years from now, if you agree to delay the start of the 20 equal $20,000 payments until three years from the date of agreement. Which offer should you take, if the interest rate is 15% (compounded annually).

Reference no: EM13902880

Questions Cloud

Department wanted to provide new service to their customer : You were invited by the president of an insurance company who wanted to consult with you. The president told you that she had the following problem: The head of the life insurance department wanted to provide a new service to their customers. As the ..

Description of your statistical design and sampling plan : What are the relevant variables? What are their measurements (think variation)? If you intend to collect your own data, include a description of your statistical design and sampling plan. If it's a survey, include the questionnaire. If you are usi..

How would you respond to the manager of networks : As president, how would you respond to the manager of Networks? Discuss each scenario described in parts a., b., and c.

What are four ways to reduce manufacturing lead time : What are four ways to reduce manufacturing lead time? Please indicate which category they fall into, i.e. operations or nonoperations. How does the concept of just-in-time relate to Groover's MLT?

Two companies are interested in purchasing the land : Your company owns a large parcel of land in a neighboring city that you have no use anymore. Two companies are interested in purchasing the land. Company A has offered you $20,000 per year for 20 years for the land. Which offer should you take, if th..

What is the inductance of the solenoid : A 400-turn solenoid is 25-cm long and 3.0-cm in diameter. What is the inductance of the solenoid?

Explaining how organizations use business process management : Write a paper explaining how organizations use business process management. be sure to to use one specific example from the CSU Online library. Address the following in the paper: what is business process management? Why do processes need management?..

Following information is from the annual financial statement : 1.The following information is from the annual financial statements of Raheem Company.

What is the probability that she is picked up by a bus : Find the expected position of the next book requested when the system is in its stationary distribution, which we will call μ. Note that μ is a function of p1, pn and what is the probability that she is picked up by a bus?

User Account

All Pages