Determine the expected annual operating cost

Reference no: EM13180697

A mining company plans to invest $50,000 in a project. The annual operating cost is expected to be $6,000, and the annual income is expected to be $22,000. THe salvage value will be $5,000 at the end of 5 year life. Find the rate of return to the nearest tenth of a percent. This question should be solved by trail of error and the answer is approciamtely 20%.

Reference no: EM13180697

Questions Cloud

Describe tpm-tqc and jit : Amazon's "autobot" recommended a book to an economist titled Quality maintenance: Zero Defects through Equipment Management. The book's description is "Achieve zero-defect product quality by eliminating the root causes of your equipment defects

What is the average total cost of production : Your firm operates three plants. The cost functions vary across the three plants. Plant A: Marginal Cost = 6Q Average Variable Cost = 3Q Average Fixed Cost =1000/Q Plant B: How much output should be produced at each plant?

How does a budget deficit lead to an appreciating currency : How does a budget deficit lead to an appreciating currency and a trade dificit? Explain how the introduction of the foreign sector makes the fiscal policy tool of budget deficit less effective in stimulating the open, as comapared to the closed, e..

What is the probability that they are identical : The notebookalso comes loaded with one of four different games. How many different combinations of colors and games are possible? If you were to order three different notebooks withoutstating preference on color or games, what is the probability t..

Determine the expected annual operating cost : A mining company plans to invest $50,000 in a project. The annual operating cost is expected to be $6,000, and the annual income is expected to be $22,000. THe salvage value will be $5,000 at the end of 5 year life.

Find the rate of return on a process : A packaging company needs to know the rate of return on a process which will cost $60,000, have an income of $25,000 per year, have an operating cost of $5,600 per year, and have a salvage value of $7,000 at the end of its five year life.

What price does the firm charge its customers : A has $1.5 million in sales, a Lerner index of 0.57 and a marginal cost of $50. The firm competes against 800 other firms in its relevant market a. What price does this firm charge its customers? b. What is the firm's markup factor? Wh..

What is tins specific heat if the equilibrium temperature : degrees Celsius) is placed in 20.6 g of water at 25.00 degrees Celsius. What is tins specific heat if the equilibrium temperature is 47.75 degrees Celsius?

What sort of shift in supply or demand results equilibrium : Name three other providers of urgent care services. Emergency departments, urgent care clinics, and walk-in clinics supply urgent care services.What sort of shift in supply or demand would result in a market equilibrium with higher prices and sale..

User Account

All Pages