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The company you work for asks you to recommend whether their Mercedes truck should be replaced now or kept in service for an additional 10 years. The following data is provided to you: the truck can be sold now for $8,000 but it needs an engine overhaul that costs $4,000. Once this overhaul is complete, the truck will have maintenance expenses of $3,000 per year. At the end of 10 years, the truck will have a zero market value. A new truck costs $18,000 including tax, title, and license and would be used for 10 years with a market value of $4,000 at the end of the 10 years. However, maintenance expenses are predicted to be $1,000 for the new truck. All other costs such as fuel, oil, and insurance are the same for the old or new truck.
The company wishes to use a 10% interest as their internal rate of return. Should the existing truck be replaced?
Does the Just in time( JIT) method enable companies to be successful with meeting customer requirements or does it cause supply chain delays What is the impact of component shortages when utilizing JIT
a. a. pick a health and beauty brand and item you use regularly for example shampoo shaving cream moisturizer razor
a recent study of the determinants of wages for clerical staff at a state university found that years of schooling
In the classical model with fixed income a decrease in the real interest rate could be the result of a(n): If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the ..
Suppose that the allocatively efficient output level in long-run equilibrium is 210 meals. Is the deadweight loss for this firm greater than or less than $60?
explain the relationship among household disposable income consumption and savings. what is marginal propensity to
Disinflation is defined as a reduction in the rate of inflation. B. Policymakers can exploit a trade-off between inflation and unemployment in the short run but not in the long run. C. Unemployment rates below the natural rate of unemployment are di..
Which variables are included and how are they combined What are the Millennium Development goals Who established them What are the targets for poverty and hunger and which regions are "off track" for this goal
Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience.
If the price level is above the equilibrium price level, how does the aggregate quantity of goods and services demanded compare to the aggregate quantity of goods and services supplied at the price level? Is this a condition of equilibrium? If no..
Would you expect the price elasticity of demand to be higher at the level of an individual school (e.g., Baker) or at the aggregate level
After Iraq invaded Kuwait gasoline prices rose dramatically – up to 50%. These were many effects of the increased price of gasoline.
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