Calculating rate of growth in fuel costs

Reference no: EM1373701

It costs $2600 to insulate a factory. Next year, the fuel savings will be $220. Every year after this, the expense of fuel is expected to increase by the rate g. If the discount rate is 12 percent, what rate of growth in fuel costs justifies going ahead with the insulation plan? [Suggestion: Make sure that the rate of growth and discount rate are aligned in terms of periodss.]

Reference no: EM1373701

Questions Cloud

Balance between short range and long range goals : General Electric is a large, highly decentralized company. At present it developed these goals, GE had approximately 170 responsibility centers called "departments,"

Acceleration of economic development : How would you account for the great divergence that is acceleration of economic development in the West in 19th century while much of the rest of world remained characterized through low rates of economic growth?

Multiple choice questions - macroeconomics : Assume a society manufacture only guns and butter. When it uses all its resources for the production of guns and operates efficiently, it can manufacture 240 guns a year.

Create an arff file with the data types : Create an arff file with the following data types, flags, unit_id, names must be nominal and timestamps (ts) must be date

Calculating rate of growth in fuel costs : It costs $2600 to insulate a factory. Next year, the fuel savings will be $220. Every year after this, the expense of fuel is expected to increase by the rate g.

Multiple choice questions about t bills supply : Determine which of the following is not a major component of the Federal Reserve System? Kudrow stock just paid a dividend of $4.76 a share and plans to pay a dividend of $5 a share next year, which is expected to increase three 3% per year subsequen..

Maintaining economic growth through control inflation : In his semi yearly testimony to the Senate banking committee past summer Alan Greenspan commented on the recent Fed funds rate hike in late June 2004;

Adopt an ingredient branding strategy : Is there any way for Boeing to adopt an ingredient branding strategy with their jets and how - What would be the pros and cons?

Important questions of macroeconomics : Explain a situation in which a increase in the value level increases interest rates, lowers consumption, and leads to lower investment in capital goods.

User Account

All Pages