When the company is ready to make the purchase

Assignment Help Microeconomics
Reference no: EM13697425

An engineering firm wishes to purchase new computers and server to replace their aging equipment. They plan on purchasing the equipment in 3 years. The purchase price of the computers is be $2468 each today. The purchase price of the servers will be $12,987 each. They will need 45 computers and 4 servers to replace their existing equipment. If the computers will inflate at the rate of 1.5% per year. How much will they cost when the company is ready to make the purchase?

Reference no: EM13697425

Questions Cloud

Relative magnitude of key variables in decision-making : Describe the precautionary principle and how it relates to safe minimum standards, and minimum regret decision-making. In class we used a "land development vs land preservation" example to address this.
Calculate the increase or decrease in profits : Calculate the increase or decrease in profits for the three divisions and the company as a whole (four separate computations) if the agreement is enforced. Explain your thought process, comment on the situation, and make a suggestion based on t..
What is the minimum proportion of cars : There are two types of used cars on the market: Lemons and Cherries. Lemons are worth $200 to sellers and $600 to buyers. Cherries are worth $800 to sellers and $1200 to buyers. Buyers know how many cars of each type are available for sale, but they ..
Prepares its financial statements under us gaap : Kiki Corporation, a US company, prepares its financial statements under US GAAP. For 2014, the company reported $1,000,000 income and stockholders' equity balance of $8,000,000 on December 31, 2014. In preparation for a possible adoption of IFR..
When the company is ready to make the purchase : An engineering firm wishes to purchase new computers and server to replace their aging equipment. They plan on purchasing the equipment in 3 years. The purchase price of the computers is be $2468 each today. The purchase price of the servers will be ..
Determine if the robot is a justifiable investment : An assembly operation at a software company now requires $100,000 per year in labor costs. A robot can be purchased and installed to automate his operation. The robot will cost $200,000 and will have no market value an end of the 10 year study period..
New municipal refuse-collection truck- good investment : A new municipal refuse-collection truck can be purchased for $84,000. Its expected useful life is six year, at which time its market value will be zero. Annual receipts less expenses will be approximately $18,000 per year over the six year study peri..
Who has to make a decision to raise additional capital : Who has to make a decision to raise additional capital
Survey equipment is very expensive and become obsoletes : Survey equipment is very expensive and become obsoletes and needs to be replaced every 5 years. Consider a new GPS system consisting of a base station ($18,968 today's cost), a rover ($7665 today's cost), and software ($3833 today's cost).

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain comaprative advantage in the production

economists believe that when two countries specialize and trade , each will be able to buy goods in which the other specializes at a lower cost than it would take to produce these goods itself.

  What output is the average variable cost

At what output is the average variable cost (AVC) at a minimum and if the market price of the firm's output is $7.5 per unit, should the firm produce or shut down?

  What is the real interest rate and inflation premium

Presume that the nominal rate of interest is four percent and the inflation premium is one percent. What is the real interest rate? Alternatively, suppose that the real interest rate is 2 percent and the nominal interest rate is 6%. What is the infla..

  Determine wether variable is qualitative or quantitative

A firm conducted a research about the demographics of their customers. For the study they collected data about the following variables: gender, marital status, credit rating (low, medium, high), annual income, and age.

  Firm demand for labour curve

Assume a firm's production function is given by Q = 12L - L^2 for L = 0 to 6, where L is labour input per day and Q is output per day. Derive and draw the firm's demand for labour curve if output sells for $10 in competitive market.

  Compute the four-firm concentration ratios for 2006 and

complete the following problem the table represents the market share of the top eight firms in a hypothetical industry

  What is a product or service that chevron offers

What is a product or service that Chevron offers? Create a graph representing the current market it. Use the current market price of one of their products for the Ep and Eq. Name all elements in the graph including, but not limiting to: supply, deman..

  A bond with no expiration date has a face value of 10000

a bond with no expiration date has a face value of 10000 and pays a fixed 10 percent interest. if the market price of

  Graphs is to demonstrate the relationship between variables

The purpose of graphs is to demonstrate the relationship between variables. If society is operating at a point inside its production possibilities curve, then some resources are not being fully utilized. A production possibilities curve shows all the..

  Methodological individualism and social science

Describe the following phenomenon from a perspective of methodological individualism and social science. Americans drink coffee; the British drink tea.

  Lowest quintile of households in the income distribution

The lowest quintile of households in the income distribution receives about:

  What should be the unit price to quote

An executive from a large merchandising firm has called your vice president for production to get a price quote for an additional 100 units of given product. The vice president has asked you to prepare a cost estimate,

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