Candidate should be selected

Assignment Help Business Economics
Reference no: EM13151321

Your first assignment as an engineering technology graduate from the University of Houston downtown is to recommend to management which of two equipment candidates should be selected. The two candidates have the following parameters (MARR = 15% per year): 
Candidate X: useful life of 8 years; estimated market value at end of life of $800; annual running expenses of $400; annual revenues produced of $1,600 and an initial installed cost of $4,500. 
Candidate Y: useful life of 10 years; estimated market value at end of life of $1,200; annual running expenses of $500; annual revenues produced of $1,850 and an initial installed cost of $6,000. 
(a) Given all the above factors, which candidate should be selected? 
(b) By how much would the estimated capital investment for the alternate candidate [the candidate not selected above in (a)] have to vary from your first decision in (a)? 
(c) All other factors being the same except the life of Candidate X, what would be the life of Candidate X if the decision is a tossup, that is, no one Candidate has an economic advantage over the other?

Reference no: EM13151321

Questions Cloud

Determine which test statistic applies and calculate it : Is there sufficient evidence to conclude that a significant amount of improvement took place? Calculate the mean and standard deviation. Determine which test statistic applies, and calculate it.
Consider p. ltd, a one-asset firm with no liabilities. : Prepare the income statement for the second year ). What information should be on the income statement if we cannot get the certainty condition?
Expenditure for carolina mills during the year : Carolina Mills purchased $280,000 in supplies this year. The supplies account increased by $30,000 during the year to an ending balance of $71,000. What was supplies expense for Carolina Mills during the year?
What is the probability that sample variance would be less : Suppose that, for the population of all entering freshmen, the distribution of the number of correct answers would be normal with a variance of 250. what is the probability that sample variance would be less than 100?
Candidate should be selected : Given all the above factors, which candidate should be selected? (b) By how much would the estimated capital investment for the alternate candidate [the candidate not selected above in (a)] have to vary from your first decision in (a)?
Find mean and standard deviation of age of employees : If the employees in this outlet has a mean of age as with variance between their ages as. Find the mean and the standard deviation of the age of employees of a fast-food in another outlet (Y).
How much heat will be given off : The equation for the combustion of acetone is: 2 C3H6O + 8 O2 ---> 6 H2O + 6 CO2 + 852.6 kcal How much heat will be given off if 0.18 mol of acetone is completely burned?
Calculate the degree of operating leverage : What is DynaLinear's breakeven sales volume (in units) for converters and calculate the degree of operating leverage at a projected volume of 14,000 units and explain what the DOL means.
What would be one homeostatic mechanism in plants : what would be one homeostatic mechanism in plants and what is meant by a division of labor in plants?

Reviews

Write a Review

Business Economics Questions & Answers

  Explain how event causes the bond market to move

Explain how event causes the bond market to move from initial equilibrium, E1, to final equilibrium, E2. (3) What happens to bond prices and interest rates in going from E1 to E2?

  The marginal product of labor is constant

Assuming that the marginal product of labor is constant between 10 also 11 workers also the marginal product of capital is constant between 3 also 4 machines.

  Explain would your answer differ if you and your rival

Explain would your answer differ if you and your rival were required to resubmit price quotes year after year and if, in any given year, there was a 50 percent chance that Toyota would discontinue the Highlander.

  Explain how much are islonad government purchases

assume that isoland has a closed economy. Isoland national investment is $50,000,000, its private saving is $60,000,000 and its taxes minus transfer payment equal $65,000,000. Explain how much are islonad's government purchases.

  What are the goal of the monetary authorities

f the money supply is Ms1 and the goal of the monetary authorities is full-employment output Qf, they should:

  Illustrate what is the profit maximising output

Suppose a monopolist's demand is given by the function P=25-3Q. Let the total cost of production be 7Q+28 for positive levels of output, and zero otherwise. Illustrate what is the profit maximising output.

  Incomes so much more unequal within poor nations

Why are incomes so much more unequal within poor nations that within rich nations generally

  The main arguments of the article

The review should consist of a summary of the main arguments of the article also an evaluation of the strengths also weaknesses of the article.

  New crop that would replace corn as the primary feedstock

Switch grass was promised to be the new crop that would replace corn as the primary feedstock for bio-fuels a couple of years ago. Why have we still not switched to switch grass.

  The long-run industry supply curve

(The Long-Run Industry Supply Curve) A normal good is being produced in a constant-cost, perfectly competitive industry. Initially, each firm is in long-run equilibrium

  Expand its loans by a maximum

Assuming the ABC bank has excess reserves of %5,000, it could prudently expand its loans by a maximum

  Illustrate what feature of the value function explains

illustrate what feature of the value function explains the phenomenon, and how.

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