What is the present worth of the savings per unit

Assignment Help Econometrics
Reference no: EM13189044

A manufacturer of off-road vehicles is considering the purchase of dual -axis inclinometers for instalation in a new line of tractors. The distributor of the inclinometers is temporarily overstocked and is offering them at a 40% discount from the regular cost of $142. if the purchaser gets them now instead of 2 years from now, which is when they will be needed, what is the present worth of the savings per unit? The company would pay the regular price, if purchased in 2 years. Assume the interest rate is 10% per year.

Reference no: EM13189044

Questions Cloud

Will the consumer be purchasing the same market basket : If the per-unit price of college education rises and the prices of all other items fall, is it possible for the consumer to end up on the same indifference curve as before the price change If so, will the consumer be purchasing the same market bas..
Are rye bread and wheat bread substitute or complements : Let the market demand for rye bread be given by Q = 500 I - 250Prye 400Pwheat, where Q is monthly demand in number of loaves, I is average monthly income in dollars, Prye is the price of a loaf of rye bread, and Pwheat is the price of a loaf of wh..
How much must be saved in fuel cost each year : The national highway traffic safety administration.raised the average fuel efficiency standard to 35.5 miles per gallon for cars and light trucks by the year 2016. The rules will cost consumers an average of $434 extra per vehicle in the 2012 mode..
Find the grade of the peak : base elevation of 8700 ft, mountain peak in colorado rises 14407 ft over distance of 15844 ft. find the grade of the peak.
What is the present worth of the savings per unit : A manufacturer of off-road vehicles is considering the purchase of dual -axis inclinometers for instalation in a new line of tractors. The distributor of the inclinometers is temporarily overstocked and is offering them at a 40% discount from the ..
How much will be spent to provide housing for the child : Health Care is 7%, Clothing is 6%, and Miscellaneous is 11%. To the nearest dollar, how much will be spent to provide housing for the child?
Obtain a linear demand equation : Pack-Em-In has another development in the works. If it builds 50 houses in this development, it will be able to sell them at $250,000 each, but if it builds 110 houses, it will get only $190,000 each. Obtain a linear demand equation.
What is the annual compound interest rate for an investment : What is the annual compound interest rate for an investment modeled by the function y=12*1.18x?
Estimate natural unemployment rate : A spike in the unemployment rate - the biggest in more than two decades - raised new concerns Friday that a weak labor outlook, high oil prices and continuing woes in the housing and credit markets are leading the U.S. economy into a painful reces..

Reviews

Write a Review

Econometrics Questions & Answers

  What is the dollar value of the deadweight loss

Q 1 5 20 bags. Q 2 5 15 bags. Q 3 5 27 bags. The market equilibrium price is $45 per bag. The price at a is $85 per bag. The price at c is $5 per bag. The price at f is $59 per bag. The price at g is $31 per bag. Apply the formula for the area of ..

  How much of each good will the firm produce

Suppose that a monopolist is selling in two distinct markets each sheltered from the other, and the marginal revenue of each product is given below and the marginal cost of each is the same as indicated. How much of each good will the firm produce..

  What is the per plant and total level of pollution abatement

The mayor considers engaging in direct quantity regulation (also called "command- and-control") and declares that each firm must engage in 42.5 units of pollution abate- ment. If the plants are controlled by the same firm, would it be socially optima..

  How many robots should the firm rent

In what kind of market structure does the firm sell its output How can you tell b. In what kind of market structure does the firm rent robots? How can you tell c. Calculate the marginal product and the value of the marginal product for each additiona..

  Forecasting methods or techniques

When the more current observations are more relevant to estimate of next period than previous observations, the naive forecasting method to employ is

  Calculate the sales of cfc cornflakes this year

competitive brand of cornfl akes, in dollars per 10- ounce box P M = price of milk, in dollars per quart A = advertising expenditures of CFC cornfl akes, in hundreds of thousands of dollars per year This year, P X = $ 2, I = $ 4, P Y = $ 2.50, P M..

  What would you expect from duffs stock price

Duff Inc. paid a 2.06 dollar dividend today. If the dividend is expected to grow at a constant 4 percent rate and the required rate of return is 7 percent, what would you expect Duff's stock price to be 3 years from now

  How to develope a cost and revenue structure for designing

You are planning to build a new home with approximately 2,000-2,500 gross square feet living space on one floor. In addition, you are planning an attached two car garage (storage space) of approximately 450 gross square feet.

  What is the optimal output for the production division

The Xerxes Company is composed of a marketing division and a production division. The marketing division packages and distributes a plastic item made by the production division. The demand curve for he finished product sold by the marketing divisi..

  What should your pricing policy be to maximize profits

You are the manager of a pizza parlor that produces at a marginal cost of $6 per pizza. The parlor is a local monopoly near campus (there are no other restaurants or food stores within 50 miles). During the day, only students eat at your restauran..

  What are externalities

What are externalities? What are positive and negative externalities? Give examples of Positive and negative externalities and give a brief introduction about your chosen merit good and explain the role of government in providing this merit good to..

  Multiple choice - economics and management review

Determine when the exponents of a Cobb-Douglas production function sum to more than one, the function exhibits

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