What is the equivalent annual cost of the server

Assignment Help Financial Management
Reference no: EM13813940

A new computer server costs $860,000, delivered and installed. Annual operating costs are $32,000. A five year life is expected with no anticipated value thereafter. Given a required rate of return of 12%, what is the equivalent annual cost of the server?

Reference no: EM13813940

Questions Cloud

Arguments that influenced the us supreme court decision : Outline the major societal arguments that influenced the U.S. Supreme Court decision in both cases and the subsequent reversal. Identify specific examples to support your explanation
Define project performance and status report : A project history of your recent Trillo Apparel Company District 4 Production Warehouse Move experience over the last five weeks.
Discuss the role that emotional intelligence : Discuss the role that emotional intelligence (EI) plays in the self-leadership. Be sure to provide an analysis of all four dimensions of EI (self-awareness, self-management, social awareness, and relationship management) in your response.
What monetary policies do you think caused the crisis : Did government intervention help or harm the economy before and after the panic of 2008? Would you have done anything differently - What monetary policies do you think caused the crisis and What were the effects of the policies implemented in reac..
What is the equivalent annual cost of the server : A new computer server costs $860,000, delivered and installed. Annual operating costs are $32,000. A five year life is expected with no anticipated value thereafter. Given a required rate of return of 12%, what is the equivalent annual cost of the se..
Find the net float and desirable : A Smith industry has $24,000 in deposits that have been recorded by Smith but not by its bank. Smith also has $22,450 in outstanding checks that have not yet cleared the bank. Current balance is $14,400. Find: Net float. Is this desirable? Explain.
Assignment discussion—managing data : Assignment Discussion-Managing Data
Why is the products liability system considered imperfect : Why is the products liability system considered imperfect? Support your answer with as many examples as you can provide for each critical area that is important for consumers.
What is the npv of the lockbox service : Acne Co. has average sales of $40. You could reduce collection time by 2 days by using a lockbox facility in Omaha, NE. Acbe receives an average of 10,000 checks per day, The annual interest rate is 9%. The back charges $160 daily for the lockbox ser..

Reviews

Write a Review

 

Financial Management Questions & Answers

  What is the value per share of boehms stock

Boehm Incorporated is expected to pay a $2.20 per share dividend at the end of this year (i.e., D1 = $2.20). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 17%. What is the value per..

  Estimate of the firms present cash conversion cycle

You were recently hired as CFO to improve the performance of Dennis Systems, which is highly profitable but has been experiencing cash shortages due to its high rate of growth. As one part of your analysis, you want to determine the firm's cash conve..

  1effectiveness of communication - ie readability legibility

1.effectiveness of communication - ie readability legibility grammar spelling neatness completeness and presentation

  Anything regarding its product or operations

Without changing anything regarding its product or operations, the CEO of a company wants to increase the ROE of his company. What could he possibly do? Be sure to state the steps.

  What is the value of the growth option

Martin Development Co. is deciding whether to proceed with Project X. The cost would be $10 million in Year 0. There is a 50% chance that X would be hugely successful and would generate annual after-tax cash flows of $7 million per year during Years ..

  Explain what combination of stock types would invest

What combination of stock types would you invest in and why? Use the stock types I talked about in my slides: blue chip, income, cyclical, defensive, growth, large cap, mid cap, small cap, and penny stocks.

  Revenues and costs are after tax

You can invest in a machine that costs $500,000. You can expect revenues net of any expense, except machine costs, of $150,000 at the end of each year for five years. You will subcontract the maintenance costs at a rate of $20,000 a year, to be paid ..

  What is appropriate cost of capital to evaluate the business

Verano Inc. has two business divisions a software product line and a waste water clean-up product line. The software business has a cost of equity capital of 10% and the waste water clean-up business has a cost of equity capital of 7%. Verano has 50%..

  Concept of cost of capital mace manufacturing

Concept of cost of capital Mace Manufacturing is in the process of analyzing its investment decision-making procedures. Two projects evaluated by the firm recently involved building new facilities in different regions, North and South.

  Wbs could help the team in estimating financial services

Explain how your specific WBS could help the team in estimating, planning, and understanding project requirements, deliverables, and efforts required to meet the financial services legacy system migration.

  What is the bond equivalent yield

A U.S. Treasury bill with 104 days to maturity is quoted at a discount yield of 1.70 percent. What is the bond equivalent yield?

  Best estimate of the companys cost of equity

Suppose a firm just issued a dividend of $2.50 per share on its common stock. The firm's dividends have been growing a 5% rate. IF the stock currently sells for $65, what is your best estimate of the company's cost of equity?

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