engineering economics, Business Economics

Assignment Help:
2. You recommend spending $10,000 on equipment that will increase sales of your product by $1000 a year and reduce annual operating costs by $800. The equipment has 10-year lifetime, but can be depreciated in three years according to MACRS. Your company uses a 10% interest rate and is the 25% tax bracket.
a. What is the pretax present value of this investment?
b. What is the after-tax present value of this investment?

Related Discussions:- engineering economics

What is meant by the term exception reporting, What is meant by the term ex...

What is meant by the term exception reporting? What are the advantages and the drawbacks of this type of reporting? Exception reports concentrate onto what has not gone as per

Development through trade - lower income countries, Development Strategies ...

Development Strategies are explained as follows: Keeping the reasons for the persistent poverty in the LICs aside, there are three broad progress strategies which have been ado

Why is world bank worked jointly with IMF, Why is World Bank worked jointly...

Why is World Bank worked jointly with the International Monetary Fund? The WB works jointly along with the IMF to assist LDCs through coordinated: a. Structural Adjustment P

Export, Procedure for export under deferred paymet

Procedure for export under deferred paymet

Does aid improve development, Does aid improve development? Aid improv...

Does aid improve development? Aid improves development as: • Aid is utilized to increase productive capacity and the advantages of resultant growth is extensively spread an

Explain the primary competitors of corporation, 1.) Write a concise one-par...

1.) Write a concise one-paragraph summary (no more than ½ a page!) of the corporation. This would include, for example, its products, its industry, its primary competitors, the exc

Calculate the correlation coefficient, Pick a corporation.  Create the same...

Pick a corporation.  Create the same return column for the same 60 months for this corporation. For this 60-month period what is the correlation coefficient between the monthly ret

Mr, using 8 units of production resource to produce 10,000 c0ws by a farmer...

using 8 units of production resource to produce 10,000 c0ws by a farmer how many sheep could he have produced

What is poor governance, What is poor governance? In countries along wi...

What is poor governance? In countries along with poor governance: • The rule of law has not working for example civil war and areas run by war lord • Bribery and corrupti

Economic viability of the rdf plant, Consider Fig 13-11. 1000 tons/day of m...

Consider Fig 13-11. 1000 tons/day of moist MSW are processed to yield 700 tpd of RDF product. Raw MSW heat value is 5,000 btu/lb. RDF is 8,000 btu/lb. How did processing increase

Write Your Message!

Captcha
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