Which company you should buy the widget machine

Assignment Help Econometrics
Reference no: EM13213923

QZY, Inc. is evaluating new widget machinesoffered by three companies. The machines have the following characteristics:

A B C

First cost $15,000 $25,000 $20,000

Maintenance and operating 1,600 400 900

Annual benefit 8,000 13,000 9,000

Salvage Value 3,000 6,000 4,500

Useful life in years 4 4 4

a) Construct a choice table for interest rates from 0% to100%

b) MARR = 15% From which company, if any should you buy the widget machine? Use rate of return analisys.

Use excel to graph the NPW as a function of interest rate for all alternatives. Also a choice table for interest rates from 0% to 100%. Finally, which alternative should be chosen if MARR=15%?

Reference no: EM13213923

Questions Cloud

Major perspectives in the field of psychology : Identify the five major perspectives in the field of psychology and list one subfield for each.
Explain what must be the initial concentration of reaction : What must be the initial concentration of reaction, [A]0, if (a) the zero- and first-order; (b) the zero- and second-order; (c) the first- and second-order reactions are to have the same half-life?
Elements of the criminal justice system : List, compare and contrast the 3 elements of the criminal justice system. How do these elements function to create our modern day Criminal Justice System?
Where should the manufacturing plant be located : A firm is considering moving its manufacturing plant from Chicago to a new location. The industrial engineering department was asked to identify the various alternatives together with the costs to relocate the plant, and the benefits.
Which company you should buy the widget machine : Use excel to graph the NPW as a function of interest rate for all alternatives. Also a choice table for interest rates from 0% to 100%. Finally, which alternative should be chosen if MARR=15% QZY, Inc. is evaluating new widget machinesoffered by th..
Security operations integrated : Read the section on the Walt Disney Corporation’s security operations in Orlando on pp. 206–209 of the text. How are the Walt Disney Corporation’s security operations integrated into the overall business operations?
Explain how much water would have consumed : how much water would they have consumed? How many kJ would be required to bring it to body temperature? (We noted in class that the amount of heat necessary to melt snow is 6.01 kJ/mol)
Opinion on the community era of policing : What is your overall opinion on the community era of policing as opposed to past eras and their role in society? What aspects of the previous eras would be beneficial today?
Irish and german immigrants of the early nineteenth century : Compare and Contrast the Irish and German immigrants of the early nineteenth century America in terms of their motives for leaving Europe, pattern of settlement in the United State, impact on American life, and reception by native-born Americans.

Reviews

Write a Review

Econometrics Questions & Answers

  Determine how many workers company should hire

The local operations manager for IRS must decide whether to employee 1, 2, or 3 temporary employees. He determine that net revenues will vary with how well taxpayers comply with new tax code.

  The spending multiplier is equal to what

The spending multiplier is equal to what What is the necessary change in government spending alone that is needed to get the economy to full employment  The tax multiplier is equal to what What is the necessary change in taxes alone that is needed to..

  What is the optimal subsidy per vaccination

Suppose demand for vaccination against whooping cough is Q=200-2p and supply can be represented as p = 22 +Q/4. Suppose the external benefit to society of immunisation is B =Q/4 . The government considers subsidizing individuals to get immunized.

  What is the mrsxy

If you used the uncompensated demand curve to calculate the change in consumer surplus, would your calculation be too high or too low?I. Provide a graph showing the initial outcome, the outcome after price change, the income effect, the substituti..

  What rate of interest you should expect on a bond

an auto assembly plant for their new Lazer Razer Sports Sedan in DeSoto Illinois. They will finance this project by issuing bonds of $1000 each. The bonds will mature in 5 years. You will be calculating what rate of interest you should expect

  Reduction in tax rates increase governments tax receipts

Use a Keynesian 45-degree diagram to show the effect of an increase in government spending and how could a reduction in tax rates increase government's tax receipts?

  Determine unit production costs for material and conversion

The ending inventory units were 100% complete as to material and 50% complete as to labor. overhead is applied to production at the rate of 60% of direct labor cost. determine the unit production costs for material and conversion.

  How to the use conditional probabilities to solve problems

There are two main parking lots in the downtown area of a growing city in Florida. One lot is publicly operated and the other is privately owned. On any given weekday, the probability that the public lot is not full is 0.20 and the probability tha..

  Calculate the point price elasticity of demand and income

(a) Calculate the equilibrium quantity and price for peaches. (b) Calculate the point price elasticity of demand and point income elasticity for peaches at the equilibrium. Also calculate the point cross price elasticity between peaches and aprico..

  How the airline will reduce the price of her tickects

Anne has a job that requires her to travel three out of every four weeks. She has an annual travel budget and can travel either by train or by plane. The airline on which she typically flies das a frequent-travel program that reduces the cose of h..

  Find mean satisfaction rating

Over a period of years, a toothpaste has received a mean rating of 5.9, on a 7-point scale, for overall customer satisfaction with the product. Because of a minor unadvertised change in the product, there is concern that the customer satisfaction ..

  What is the value of future amount at eoy

A future amount of $150,000 is to be accumulated through annual payments, A, over 20 years. The last payment of A occurs simultaneously with the future amount at EOY 20. If the interest rate is 9% per year, What is the value of A?

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