Reference no: EM131112707
Three alternatives have the following cost and annual benefit data associated with them: Data Alt. 1 Alt. 2 Alt .3 Useful Life, Years 10 10 10 First Cost $1,325,000 $1,980,000 $1,650,000 Annual Benefit 265,000 589,000 435,000 Annual M&O Costs 95,000 97,000 91,000 AnnualM&O Gradient 2,300 2,100 1,980 Salvage Value 145,000 205,000 178,000 Loan Payment 150,946 225,565 187,971 The loan payments are calculated using an interest rate of 10%, a life equal to the life of the machine, and a down payment of 30%. Use a MARR of 12% and determine which machine, if any, should be purchased. Use incremental rate of return for your analysis. Do not forget to use DN(Do Nothing) in the analysis.
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Use the updated demand and marginal revenue functions
: Use the updated demand (QD) and marginal revenue (MR) functions below to complete this assignment. Due to changes in the low calorie, frozen, microwavable industry’s market structure, the firm-specific demand equation for our hypothetical company has..
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What do you understand by portfolio management strategies
: What do you understand by portfolio management strategies?
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The gainers and losers of such monetary policy
: What are the objectives of this interest rate? What are the PROS and CONS of raising the rate of interest? Who are the gainers and losers of such monetary policy? What is your general personal opinion (in support or against) about this monetary polic..
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Non-violent protest to effective in authoritarian countries
: As certain case studies seem to suggest, it is possible for non-violent protest to be effective in authoritarian countries for the following reasons: 1) non-violence is capable of disrupting the pillars of support that keeps the government in power, ..
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Cost and annual benefit data associated
: Three alternatives have the following cost and annual benefit data associated with them: Data Alt. 1 Alt. 2 Alt .3 Useful Life, Years 10 10 10 First Cost $1,325,000 $1,980,000 $1,650,000 Annual Benefit 265,000 589,000 435,000 Annual M&O Costs 95,000 ..
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Cashflow diagram
: How many kilometers must a car be driven per year for leasing and buying to cost the same? Use 10% interest and year-end cost. Leasing: $0.20 per kilometer Buying: $5000 purchase cost, 3-year life, salvage $1200, $0.04 per kilometer for gas and oil, ..
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Which plan is more economical on the basis of present worth
: Midwest Power and Light operates 14 coal-fi red power plants in several states around the United States. The company recently settled a lawsuit by agreeing to pay $60 million in mitigation costs related to acid rain. Determine which plan is more econ..
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About the age earnings cycle
: which of the following statement are correct about the age earnings cycle? which of the following correctly describes the trend in US union membership? in recent decades, the union-nonunion hourly wage differential has:
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Determine whether to send geologists to explore oil track
: The payoffs to each firm (in billions of dollars) and an extensive form game between BP and Shell are shown in the figure. BP has 20 percent of the U.S. gasoline market share and Shell has 16 percent market share. BP and Shell are attempting to deter..
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