Determine the equivalent dollar savings per operating

Assignment Help Business Economics

Reference no: EM13979195

Georgia Mills Company (GMC) purchased a milling machine, which it intends to use for the next five years, for $180,000. This machine is expected to save GMC $35,000 during the first operating year. Then, the annual savings are expected to decrease by 3% each subsequent year over the previous year due to increased maintenance costs. Assuming that GMC would operate the machine for an average of 5,000 hours per year and that the machine would have no appreciable salvage value at the end of the five-year period, determine the equivalent dollar savings per operating hour at 15% interest compounded annually.

Reference no: EM13979195

Questions Cloud

Prepare an analysis of american literature : You will prepare an analysis of American literature as you complete a fictional assignment in a literature class. You will format part of the analysis in a two-column design, apply a document theme, apply and modify styles, include bullets, and vi..

Movement in the direction of a market-based system : The movement in the direction of a market-based system with freely determined prices, competition, profits, private ownership, and other features of capitalism is not simple. Discuss some of the challenges associated with an economy transitioning fro..

Charge of development for a developing country : Imagine you are in charge of development for a developing country and were approached by a multinational corporation interested in locating in your country. Identify some of the benefits and some of the costs to the host country from allowing a multi..

The first steep slope of the ridge : Hillary's ice-axe bit into the first steep slope of the ridge, and he felt a surge of confidence. The snow was hard and firm. A few more strokes of the axe, and he had cut a good solid step. Best of all, with a firm thrust he could sink his ice-axe t..

Determine the equivalent dollar savings per operating : Georgia Mills Company (GMC) purchased a milling machine, which it intends to use for the next five years, for $180,000. This machine is expected to save GMC $35,000 during the first operating year. Assuming that GMC would operate the machine for an a..

How far away must the screen be to produce an image : An item is 21 cm from a lens with a focal length of +12 cm (convex lens). How far away must the screen be to produce an image, and what is the magnification of the image? Draw a rough picture of where the image is in relation to the object and the..

Draw and carefully explain how consumer surplus : Draw the domestic market for airplanes. Show the effect of the economy opening up to trade, with the world price below the equilibrium price in autarky. Draw and carefully explain how consumer surplus, producer surplus and total surplus are affected ..

Internet banking likely to have on the demand for cash money : What impact is increased internet banking likely to have on the demand for cash money? Be specific and detailed in your answer.

Which of data sets are approximately normally distributed : What can you say about your three stocks with respect to daily closing prices and daily changes in closing prices? Which, if any, of the data sets are approximately normally distributed?

User Account

All Pages