Determine what is the present worth of the investment

Assignment Help Civil Engineering

Reference no: EM13298437

Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board manufacturing. The system costs $40,000. It has an expected life of 7 years at which time its salvage value will be $7,500. Operating and maintenance expenses are estimated at $2,000 per year. If the filtration system is not purchased, Aerotron Electronics will have to pay Bay City $12,000 per year for water purification. If the system is purchased, no water purification from Bay City will be needed. Aerotron Electronics' MARR is 10% compounded annually. What is the present worth of this investment?

Reference no: EM13298437

Questions Cloud

What is each projects internal rate of return : What is each project's payback period - what is each projects net present value and what is each project's internal rate of return?

What is the formula for calculating residual income : What is the formula for calculating residual income? I have sales #'s, invested capital #'s, net operating profit after taxes #'s and minimun required return percentage.

Mass of a moving object is doubled with no change in speed : When the mass of a moving object is doubled with no change in speed, by what factor is its momenteum changed? its kinetic energy? At what point in its motion is the KE of a pendulum bob a maximum? when its KE is half its maximum value, how much PE do..

Find the net force on the motorcycle and rider : A motorcycle and rider have a total mass of 252 kg the rider applies the brakes, What is the net force (in Newtons) on the motorcycle and rider combination

Determine what is the present worth of the investment : Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board manufacturing. The system costs $40,000. It has an expected life of 7 years at which time its salvage value will be $7,500.

Prepare the journal enrty to record the sales : The company had $660,000 of promotional sales in september. Prepare the journal enrty to record the sales.

How much interest was included in the first payment : How much interest was included in the first payment? How much repayment of principal was included? How do these values change for the second payment?

Determine largest load p that can be applied without cable : Determine largest load P that can be applied without any cable exceeding its yield strength. Bar length in 10 ft with aluminum directly in the center and steel cables 5 feet on either side. Steel cable lengths are 8 ft and aluminum cable is 10 ft...

Method called average that returns average of the number : Write a program that calculates the average of up to 50 numbers input by the user and stored in an array. The program should use a class named Statistics and have an AddNumber method that stores numbers into an array one at a time. The class should h..

User Account

All Pages