Computing expected profit of new system

Assignment Help Microeconomics
Reference no: EM1367944

The Apollo Products Company currently collects all of its customer payments in Detroit. By going to a new lock box system with boxes in Los Angeles, Boston, and Atlanta, Apollo Products can reduce the total time it takes to convert customer payments into available funds by an average of 4.50 days. The firm collects an average of $95,000 per day. The extra costs associated with the lock box system are $28,500 per year. The opportunity cost of funds is 4.5% per year. What is the expected annual profit of using the new system?

Reference no: EM1367944

Questions Cloud

Identify the major stakeholders : Describe what the article is about and identify the major stakeholders - Explain what the article is about. Describe what you believe to be the basic ethical position of the company or CEO outlined in the article. Are there any inconsistencies in h..
Write program which translate letter grade into number grade : Write program which translates a letter grade into number grade. Letter grades are A, B, C, D, F, possibly followed by + or -.
Canada relationship to the us : Focusing on the production of a nation other than the US. Determine what is currently going on with the Canadian Automotive Industry and explain why is this important?
By how shift aggregate demand increase government purchases : Assume re is a multiplier effect and that total crowding-out effect is $6 billion. An increase in government purchases of $10 billion will shift aggregate demand to left or right by how much.
Computing expected profit of new system : The Apollo Products Company currently collects all of its customer payments in Detroit. By going to a new lock box system with boxes in Los Angeles, Boston, and Atlanta, Apollo Products can reduce the total time it takes to convert customer paymen..
Nurse leaders and acute care organizations : What suggestions can you provide to nurse leaders and acute care organizations to heighten their efforts to retain the present workforce while attracting others to the nursing profession?
How to develop behavioral interview questions : how might you go about developing behavioral interview questions for a given position in your division - how to develop behavioral interview questions
Write ethical issues involved in eliminating jobs in k-mart : Sears is losing market share, has been acquired by K-Mart, and is eliminating jobs; Wal-mart is gaining market share and hiring. Write ethical issues involved, and which firm has a more ethical position?
Illustrate what happens to equilibrium income : Government increases its spending by $2 billion and raises taxes by $1billion. Illustrate what happens to equilibrium income.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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