What is the net present value of purchasing the tractor

Assignment Help Business Economics

Reference no: EM13735503

A farm must decide whether or not to purchase anew tractor. The tractor will reduce costs by $2,000 in the first year,$2,500 in the second and $3,000 in the third and final year of usefulness. The tractor costs $9,000 today, while the above cost savings will be realized at the end of each year. if the interest rate is 7%. What is the net present value of purchasing the tractor?

Reference no: EM13735503

Questions Cloud

Overview of engineered materials : provides an overview of engineered materials and includes a discussion

Sources of recruitment candidates : List sources of recruitment candidates and develop another table that outlines various sources (Campus, Search Firms, On-line, Military, Competitive, Job Fairs, Government, and four other sources) and their pros and cons.

Technology based-quality based or cost based : Success of a company investing and operating in a foreign country depends on the competitive advantage of the company. The entry strategy could be technology based, quality based, or cost based. Explain and comment.

Exploring the environment of business : By the time this course is over, we will have spent 15 weeks together, exploring the environment of business. You have (hopefully!) gained much information and perhaps a new perspective or two

What is the net present value of purchasing the tractor : A farm must decide whether or not to purchase anew tractor. The tractor will reduce costs by $2,000 in the first year,$2,500 in the second and $3,000 in the third and final year of usefulness. The tractor costs $9,000 today, while the above cost savi..

Unethical versus ethical leadership : For instance, Leaders at AIG argued that they were obligated to pay bonuses to executives even after the company was bailed out by the U.S. Government.

Demand for gasoline is inelastic and supply of gasoline : The demand for gasoline is inelastic and the supply of gasoline is elastic.

What is data analysis and how many methods are there : What is data analysis? How many methods are there

Question regarding the mental models : Why is so hard for people to change their assumptions? Discuss specific reasons why leaders need to be aware of their mental models.

User Account

All Pages