What is the annual worth of the two machines

Assignment Help Microeconomics
Reference no: EM13336677

An engineer uses an economic analysis to determine which of the two machines to purchase. All the machines that are being considered are capable of performing the same task. Assume that the minimum attractive rate of return is 12% compounded monthly. What is the annual worth of the two machines? Which is the best investment


Machine X Machine Y
Initial cost 8,000 11,000
Estimated life 3 years 3 years
Salvage value 1,000 1,500
Monthly Maint. Cost 1,500 1,475
Monthly incomes 3,550 3,475

a. EAW x = 1,784.76, EAW y = 1,646.83, X is the best investment
b . EAW x = 669.51, EAW y = 807.53, Y is the best investment
c. EAW x = 1,784.76, EAW y = 1,646.83, Y is the best investment
d. EAW x = 807.53, EAW y = 669.51, X is the best investment

Reference no: EM13336677

Questions Cloud

Vetpharm has historically produced and sold drugs : VetPharm has historically produced and sold drugs for animals; however, one of its products developed for animal use has recently been approved for a similar use in humans. Market research has revealed that that at the current per dose price, ..
How many liters of solution can be theoretically purified : Make sure you preview your pdf file prior to submitting it. Check the cover sheet, header on each page, portrait orientation of plots and schematics, legibility, and single file submission with correct page order.
Explain one-fourth of the cancer deaths are from lung cancer : Consider the following approximate figures relating to cigarette smoking and cancer. The death rate in the US population of 270 million is 15 deaths per 1000 persons per year. One-fifth of these deaths are from cancer and one-fourth of the cancer ..
Find the radius of a stationary orbit : a stationary orbit is done with a period equal to the time it takes the planet to revolve one time so that the satellite appears to remain at the same point in the sky all the time. Find the radius of a stationary orbit
What is the annual worth of the two machines : An engineer uses an economic analysis to determine which of the two machines to purchase. All the machines that are being considered are capable of performing the same task. Assume that the minimum attractive rate of return is 12% compounded m..
Calculate the velocity and velocity head at the pipe outlet : A pipe of 20 cm diameter is carrying a discharge of 0.1 m3/sec. If the diameter of the pipe is reduced to 5 cm at its end, calculate the velocity and velocity head at the pipe outlet.
Find the electric field at point along the axis of the ring : A ring with radius R has a total charge Q uniformly distributed around it. To leading order, find the electric field at a point along the axis of the ring, a very small distance z from the center
An energy management system : An energy management system that can save 7,500 per year for four years, expenses are 2,000 per year, installed at a cost of 20,000. At the end of 4 years it is expected to be sold for 1,250. using the end of year convention, the rate of retur..
How to synthesize benzene-1,2-dicarboxyclic acid\ : Give the structures of two different aromatic compounds that could be used to synthesize benzene-1,2-dicarboxyclic acid

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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