What is the future worth of this investment

Assignment Help Business Economics
Reference no: EM13886762

Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $18,500 per year. An emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle's MARR is 10% per year.

a) what is the future worth of this investment?

b) what is the decision rule for judging the attractiveness of investments based on future worth?

c) is the filter economically justified?

Reference no: EM13886762

Questions Cloud

Determine the velocities in both sections of the duct : Air ?ows in a 20-cm-diameter duct at 120-C and 120 kPa with a mass ?ux of 5 kg=s. The circular duct converts to a 20-cm square duct in which the temperature and pressure are 140-C and 140 kPa, respectively. Determine the velocities in both section..
Purchased using a ranking of future worth analysis : Parker County Community College (PCCC) is trying to determine whether to use no insulation or to use insulation that is either 1 inch thick or 2 inches thick on its steam pipes.  The insulation has a life expectancy of 10 years. Determine which insul..
Bade on a snowplow turns : The blade on a snowplow turns the wet snow through an angle of 120- but off to one side at 30-. If the snow has a density of 500 kg/m3, what power is needed to move the blade at 40 mi/h if it scoops snow that is 15-cm deep and 3-m wide?
Empirical evidence on behavior of costs for real-world firms : Much of the empirical evidence on the behavior of costs for real-world firms suggests that
What is the future worth of this investment : Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $18,500 per year. An emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle's MARR is 10% per year. what i..
Importance of efficient forecasting demand for product : What is the importance of an efficient forecasting demand for a product and its relationship with economic gain?
Total revenue that farmers receive from the sale of grain : Which of the following statements supports how the following event could occur: A drought around the world raises the total revenue that farmers receive from the sale of grain, but a drought only in Kansas reduces the total revenue that Kansas farmer..
Acts of domestic terrorism and international terrorism : Compare and contrast the American response to acts of domestic terrorism with acts of international terrorism. Predict at least one (1) way these responses may change within the next five (5) years. Provide a rationale for your prediction
Decided to always spend one-third of her income on clothing : Maria has decided to always spend one-third of her income on clothing.

Reviews

Write a Review

Business Economics Questions & Answers

  Explain when a firm should bring its supply chain in-house

Explain when a firm should bring its supply chain in-house. Explain when a firm should let its supply chain remain external.

  Q1 what are the three most important factors driving

q1. what are the three most important factors driving economic growth? explain briefly using an appropriate example.q2.

  Two firms are planning their marketing strategies

Two firms are planning their marketing strategies. Firm K can earn $25 million in profits from strategy S if firm L responds with strategy P, and $7.5 million in profit from S if L responds with strategy Q. Firm K can follow strategy T, which returns..

  Clayton-anti trust act-under perfect competition

The Sherman Anti-Trust Act. If competition decreases in a certain industry. Under perfect competition. The Clayton-Anti Trust Act

  Advertising industrys position on marketing to children

Which statement BEST describes the advertising industry's position on marketing to children? marketers must limit their use of advertainment in broadcast and online channels.

  Calculate the arc price elasticity

Sales are 3,100 at a price of $200 and 2,400 at a price of $300. Calculate the price of elasticities of demand using $200 as the base value; then use $300 as the base value. Calculate the arc price elasticity and compare the three calculations. How d..

  Decrease the quantity of money in circulation

Suppose that there is a temporary, but significant, increase in oil prices in an economy with an upward-sloping SRAS curve. If policymakers wish to prevent the equilibrium price level from changing in response to the oil price increase, should they i..

  Total variable cost increased

When Ajax co. Produced 3 units of output per week, its total fixed cost was $100 and total variable cost was $45. When output increased to 4 units per week, total fixed cost remained at $100 and total variable cost increased to $65.

  Reinert maintains that evidence is that north-south trade

Reinert maintains that the evidence is that North-South trade has a _______ negative impact on the wages of Northern unskilled workers, and that protectionism ___________ a reasonable response.

  Suppose that firms only variable input is labor

Suppose that a firm's only variable input is labor. The firm increases the number of employees from four to five, thereby causing weekly output to rise by two units and total costs to increase from $3,000 per week to $3,300 per week.

  Compute the monopolists profit-maximizing supply

(Price Posting) A monopolist supplies to a market with (inverse) demand given by D(Q) = 100 ? Q. The monopolist has constant marginal cost c = 2. Compute the monopolists profit-maximizing supply choice and the corresponding mark-up over marginal cost..

  Explain why a competitive firm should stop producing

Elucidate the reason Explain why a competitive firm should stop producing immediately if the price is lower than the average variable cost.

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