User Account

All Pages

Calculation of net present value

Assignment Help Business Economics
Reference no: EM133080009

Eddie is purchasing a fridge and must choose between fridge A and B. Fridge A is 500 W, has an upfront cost of $1,200, a lifetime of 10 years, an efficiency of 52%, and a resale value of $290. Fridge B is 300 W, has an upfront cost of $2,500, a lifetime of 16 years, an efficiency of 70%, and a resale value of $510. Electricity costs $0.10 per kWh. Inflation is 2.0% per year. Based on a calculation of net present value and the difference in NPV between the fridges, which fridge should you purchase? If the inflation is now 12% instead, what would be the NPV of each fridge?

Reference no: EM133080009

Questions Cloud

Explain cyclical-structural and frictional unemployment : Summarize the labor market flows (both in terms of definitions and in terms of what the data show.
Parliamentary democracy rather than violent insurrection : Socialism is committed to parliamentary democracy rather than violent insurrection. True or false?
What amount of the cafeteria net cost will be allocated : The cafeteria's net costs total $130,100. What amount of the cafeteria's net cost will be allocated to the molding department
Perform post-training and analysis : Perform post-training and analysis and How would you automate the training process using Python and libraries?
Calculation of net present value : Eddie is purchasing a fridge and must choose between fridge A and B. Fridge A is 500 W, has an upfront cost of $1,200, a lifetime of 10 years, an efficiency of
Cost of installing solar photovoltaic system : Why does the cost of installing solar photovoltaic system vary across countries?
What is the symmetric equilibrium bidding strategy : What is the symmetric equilibrium bidding strategy b(v)? Explain in words why you know this.
Prepare Oriole contribution format income statement : The company's 938 customers are charged $30 per month for this service, Prepare Oriole contribution format income statement
Unique challenges associated with increase in prisoners : Explain the unique challenges associated with the increase in prisoners with ties to terrorism and other extremist groups.

Reviews

Write a Review

Business Economics Questions & Answers

  Plans to deposit

Brad will graduate next year. When he begins working, he plans to deposit $3,000 at the end of each year into an IRA account. If the retirement account pays 4% interest, how much will be in his account after 40 deposits? ( Please show work step by st..

  Discuss the importance of consumers

Discuss the importance of consumers and the community in health services.

  Define the discount window and federal reserves policy tool

The Federal Reserve Discount Window was fundamental to the founding of the Fed in 1913. And while the basic structure has stayed the same, in at least one way its importance has been diminished and in at least one way its importance remains significa..

  Infographic using an infographic maker

Summarize what you have learned this week about web fonts into an infographic using an infographic maker such as Piktochart

  Construct the yearly income-leisure constraint

a. Construct the yearly income-leisure constraint. b. If t=50%, construct the income-leisure constraint. c. Now t=0 for the first 25 weeks of working and 50% thereafter. Construct the income-leisure constraint.

  What is the probability that the two choose the same number

A student and a professor each choose a number between 1 and 8 (1 and 8 are both possible choices). What is the probability that the two choose the same number?

  Find that the parking lot cost index

You have been asked to estimate the cost today of a 2,500 ft2 parking lot. You research and find that parking lots have a power-sizing exponent of 0.55 and that your company built a similar 1,000 ft2 lot 5 yrs ago that cost $50,000. You also find tha..

  Which marginal revenue equals marginal cost

Explain why selling output at a price below that at which marginal revenue equals marginal cost (MR = MC) might serve to deter entry of a potential competitor.

  Minimise or alleviate economic difficulties

Critically evaluate measures used by Egyptian governments and central banks to manage the economies of their country. By critical evaluation

  Price-quantity combination that maximizes revenues

Suppose the demand curve for a public park is Q = 80 –2p, where Q is the number of visitor-days and p is the entry price. The marginal cost of operating the park is MC = 10. What is the efficient level of entrance fee and the number of visitors at th..

  Homogeneous-agent models and heterogeneous-agent models

What is the difference between homogeneous-agent models and heterogeneous-agent models?

  What is the elasticity of demand with respect to advertising

The following equation represents the weekly demand that a local theater faces. Determine the profit maximizing ticket price for the theater. What is the price elasticity of its demand at this price? What is the elasticity of its demand with respect ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd