Your first assignment as an engineering technology graduate

Assignment Help Business Economics
Reference no: EM13375545

Your first assignment as an engineering technology graduate from the University of Houston downtown is to recommend to management which of two equipment candidates should be selected. The two candidates have the following parameters (MARR = 15% per year): 
Candidate X: useful life of 8 years; estimated market value at end of life of $800; annual running expenses of $400; annual revenues produced of $1,600 and an initial installed cost of $4,500. 
Candidate Y: useful life of 10 years; estimated market value at end of life of $1,200; annual running expenses of $500; annual revenues produced of $1,850 and an initial installed cost of $6,000. 
(a) Given all the above factors, which candidate should be selected? 
(b) By how much would the estimated capital investment for the alternate candidate [the candidate not selected above in (a)] have to vary from your first decision in (a)? 
(c) All other factors being the same except the life of Candidate X, what would be the life of Candidate X if the decision is a tossup, that is, no one Candidate has an economic advantage over the other?

Reference no: EM13375545

Questions Cloud

Question 1 which is more likely to return the european : question 1. which is more likely to return the european economy to long term growth austerity reducing public debt or
1 a large inventory of automobiles at an auto manufacturing : 1. a large inventory of automobiles at an auto manufacturing company what constitutes good evidence for net realizable
Write your paper in the style of an academic journal : write your paper in the style of an academic journal article. the in-class readings as well as articles published in
Consider p ltd a one-asset firm with no liabilities assume : consider p. ltd a one-asset firm with no liabilities. assume that the asset will generate end-of-year cash flows of 300
Your first assignment as an engineering technology graduate : your first assignment as an engineering technology graduate from the university of houston downtown is to recommend to
1 determine whether the following production functions : 1. determine whether the following production functions exhibit constant increasing or decreasing returns to scale.
You are asked questions about 5 mutually exclusive : you are asked questions about 5 mutually exclusive candidates described as follows all quantities are in
How can you use caats to detect fraud what do you gain by : how can you use caats to detect fraud? what do you gain by using caats to detect
Newspaper reports frequently suggest that the : newspaper reports frequently suggest that the administration regardless of who is president wants the fed to lower

Reviews

Write a Review

Business Economics Questions & Answers

  Elucidate what is an economic system

Elucidate what is an economic system in which economic decisions are controlled by the internal interaction of suppy and demand.

  Find out the equation price and quantity

demand for a good of an industry is given by the equation pq=100, where p is the price and q is quantity and supply is given by the equation 20+3p=q. find out  the equation price and quantity

  Why european nations were growing very slowly

The rate cut was made because European nations were growing very slowly or were in recession. What effect did the bank hope the action would have on the economy.

  Qthis problem uses the solow model to analyze the eects of

q.this problem uses the solow model to analyze the e?ects of immigration. suppose that the economy is initiallyin

  Illustrate what is the optimal production quantity measured

Illustrate what is the optimal production quantity measured in thousands of bushels of Texas Citrus Company in the short run.

  In terms of the consumer theory set forth in this chapter

In terms of the consumer theory set forth in this chapter, can you explain the meaning of the following statements? a. "I think you get more for your money from Nike than from Reebok." b. "I wanted to buy a Boxster rather than a Malibu, but it just w..

  How business leaders use managerial economics to make

From the e-Activity, assess how business leaders use managerial economics to make business decisions indicating how profits may be impacted.

  Key economic factors for this country

Contrast two or three key economic factors for this country with the U.S. economy, and comment.

  Q television channel operating profits vary from as high as

q. television channel operating profits vary from as high as 45 to 55 percent at mtv as well as nickelodeon down to 12

  For a company whose target capital structure calls for

For a company whose target capital structure calls for 50% debt and 50% common equity, which of the following statements is CORRECT?

  Effect on quantity demanded

Assume that PY increases by 15%, what percentage effect on quantity demanded of product X could be expected.

  Local restaurateur whose trade had been profitable

A local restaurateur whose trade had been profitable for many years recently purchased a liquor license, giving her a legal right to sell beer.

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