Determine the capitalized cost

Assignment Help Business Economics

Reference no: EM131097209

A specially built computer system has just been purchased by Progress Greenhouse Products to monitor moisture level and to control drip irrigation in hydroponics beds that grow cluster tradiro tomatoes. The system's first cost was $97,000 with an AOC of $10,000 and a salvage value on the international market of $20,000 after 4 years, when Progress expects to sell the system. Determine the capitalized cost (i.e. forever) at 12% per year and explain its meaning.

Reference no: EM131097209

Questions Cloud

Determine the maximum amount the contractor : A contractor must choose between buying or renting a crane for the duration of a 5 year construction project. The contractor uses an MARR of 8%. At the end of the project, the crane can be sold for 21% of its initial cost. The cost to operate and mai..

Lead to higher level of trade for an economy : Explain briefly whether each of the following would be more likely to lead to a higher level of trade for an economy, or a greater imbalance of trade for an economy:

Hyprid-fueled engine and a six-speed transmission : You have decided to purchase a new automobile with a hyprid-fueled engine and a six-speed transmission. After the trade-in of your present car, the purchase price of the new automobile is 530,000. This balance can be financed by an auto dealer at 3%A..

Design and implement an inventory database : This phase is to be implemented by each student individually, without the help of others. You will design and implement an inventory database - Design and implement an inventory database

Determine the capitalized cost : A specially built computer system has just been purchased by Progress Greenhouse Products to monitor moisture level and to control drip irrigation in hydroponics beds that grow cluster tradiro tomatoes. Determine the capitalized cost (i.e. forever) a..

What are the total costs-prices-revenues and profit for firm : Two physical therapy firms want to merge. The price elasticity of demand for physical therapy is -0.40. Firm A has a volume of 10,400, fixed costs of $50,000, marginal costs of $20, and a market share of 8%. Firm B has a volume of 15,600, fixed costs..

The minimum value of average variable cost : For a particular competitive firm, the minimum value of average variable cost (AVC) is $12 and is reached when 200 units of output are produced. For the same firm, the minimum value of average total cost (ATC) is $15 and is reached when 230 units of ..

An increase in nation interest rate reduces : Holding other things constant, an appreciation of a nation’s currency causes. Holding other things constant, an increase in a nation’s interest rate reduces.

Calculate merchandise trade deficit-current account balance : In 1995, the U.S. economy imported $750 billion in goods and exported $576 billion in goods. However, it exported $219 billion in services and imported $141 billion in services. Receipts of income from abroad were $211 billion while income payments g..

User Account

All Pages