Calculate the payback period using simple payback analysis

Assignment Help Business Economics
Reference no: EM132360236

It is proposed to install a heat recovery device in a factory building. The capital cost of installing the device is $ 30,000 and after 7 years its salvage value is $ 2000. If the net annual saving accrued by the heat recovery device is $7000,

i. Calculate the payback period using simple payback analysis method.

ii. Determine the NPV after 7 years. Assume a discount rate of 8%.

Reference no: EM132360236

Questions Cloud

Evaluate the strengths and weaknesses of arguments : Evaluate the strengths and weaknesses of arguments for protectionism such as: the infant industry argument, the environmental quality argument
Plant-based protein versus animal meat protein : Explain the reasons behind the shift and how that has influenced the equilibrium price.
Critique and Comparison of Two Discussion Papers : Southern Cross University, Australia - MKT01760 Tourism Planning Environments Assignment - Critique & Comparison of Two Discussion Papers
Think about fuel efficiency cars : Explain the reasons behind the shift and how that has influenced the equilibrium price.
Calculate the payback period using simple payback analysis : Calculate the payback period using simple payback analysis method. Determine the NPV after 7 years. Assume a discount rate of 8%.
Knowledge of the theory of market structure : Drawing on your knowledge of the theory of market structure - supplemented by appropriate media reports - comment on the statement of ACCC Chairman
What factors may explain the trend in each : Obtain the rates for each ver the last 5 years and graph over time. What factors may explain the trend in each
Possible new market for a new video game system : India and Japan is a possible new market for a new video game system, the M-Box by MES-Sim Corporation.
Coupon requires driving to the shopping mall : Using either coupon requires driving to the shopping mall across town. According to the Weber-Fechner law, which coupon will people tend to perceive

Reviews

Write a Review

Business Economics Questions & Answers

  Always true of monopolists

Which of the following is always true of monopolists? a. they charge the highest possible price b. they always earn high profits c. they do not have to worry about demand d. they charge a price higher than marginal cost

  What is the value of autonomous consumption

What is the value of autonomous consumption (A) and what is the marginal propensity to consume (MPC)?

  Define deductibles-copayments and coinsurance

What are some of the ways a seller of goods might reassure a possible buyer who is faced with imperfect information? What are some of the ways that someone looking for a loan might reassure a bank that is faced with imperfect information about whethe..

  Illustrate what happen when workers renegotiate their wages

how will the quantity of aggregate output supplied respond to the fall in prices. Illustrate what will happen when firms and workers renegotiate their wages.

  What should the manager do

the firm will earn $15,000 if it introduces the new product, and revamping the production facilities will earn new profits of $60,000. What should the manager do.

  What is the monthly payment

A $78,000 mortgage has a 30-year term and a 9% nominal interest rate. (a) What is the monthly payment?

  Firm without the exsitence of private property rights

Can trade and exchange occur within the firm without the exsitence of private property rights? If individual property rights are necessary for econmic success, how might the firm allow property rights? Consider illegal immigration. How would illegal ..

  What does democracy require regarding education in texas

What was the issue in Edgewood v. Kirby? What was the judge’s decision? Why were 1 million out of the state’s 3 million school children receiving inadequate instruction? What does democracy require regarding education in Texas?

  What happen when south africa is world primary supplier

Suppose that the market for engagement rings is in equilibrium. Then political unrest in South Africa shuts down the diamond mines there. South Africa is the world's primary supplier of diamonds. What will happen.

  Some critics of the emissions trading system

Some critics of the emissions trading system have called on eu government to recind a large fraction of the carbon emission permits that they created when the system was first established. How would such an action, which would reduce the supply of th..

  How do the incentives and feedback for government

How do the incentives and feedback for government bureaus differ from those for profit making firms? (minimum 100 word answer)

  News clipping service is considering modernization

A news clipping service is considering modernization. Rather than manually clipping and photocopying articles of interest and mailing them to its? clients, employees electronically input stories from most widely circulated publications into a databas..

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