Different assembly methods

Assignment Help Microeconomics
Reference no: EM13689559

An electric switch manufacturing company has to choose one of the three different assembly methods. Method A will have a first cost of $40,000 an annual operating cost of $9000, and a service life of 2 years. Method B will cost $80,000 to buy and will have an annual operating cost of $6000 over its 4-year service life. Method C will cost $130,000 initially with an annual operating cost of $4000 over its 8-year life. Methods A and B will ave no salvage value, but method C will have some equipment worth an estimated $12,000. Which method should be selected? Use present worth analysis at an interest rate 10% per year.( PLEASE DRAW A CASH FLOW DIAGRAM)

Reference no: EM13689559

Questions Cloud

Specialty circuit board division has annual fixed costs : A manufacturing firm's specialty circuit board division has annual fixed costs of $100,000 and variable costs of $15.00 per board. If they charge $95 per circuit board, how many circuit boards must they produce and sell in order to break even?
The equivalent uniform annual payment is closest to : A payment of $20,000 6 years from now is equivalent, at 11% interest, to an annual payment for 12 years starting at the end of this year. The equivalent uniform annual payment is closest to?
Foreign stocks in an investment portfolio : Discuss the value of foreign stocks in an investment portfolio. Do you want them? If so, which ones? Do you diversify the classes as you would domestic stock?
Different assembly methods : An electric switch manufacturing company has to choose one of the three different assembly methods. Method A will have a first cost of $40,000 an annual operating cost of $9000, and a service life of 2 years.
What is the velocity of money and the price level : What is the velocity of money (V) and the price level (P) consistent with the quantity equation?
What is the official unemployment rate : Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10.
How about the overall goodness of fix : Find below regression output for a demand equation where "p" is own price, "pc" is the price of a compliment, and "ps" is the price of a substitute and "I" is income.
What is probability of no arrivals for more than one hour : The time between arrivals in an airport is exponentially distributed with a mean of 25 minutes.

Reviews

Write a Review

Microeconomics Questions & Answers

  Draw new consumer and producer surplus in the graph

youre part of a group of economic consultants supporting the government of sweden. sweden wants to liberalize trade in

  How chinas price controls have changed consumer surplus

Explain how China's price controls have changed consumer surplus, producer surplus, total surplus, and the deadweight loss in the markets for coal, petrol, and diesel.

  Wills bagel stop offers a frequent buyer program whereby a

wills bagel stop offers a frequent buyer program whereby a consumer receives a stamp each time she purchases one dozen

  What inefficiencies could arise in the time period

One year during this period a poor harvest had a negative impact on supply of bread and the supply curve shifted resulting in an increase in market price. New York bakers found that the controlled price of bread in New York was below the new marke..

  How to continue with the simultaneous move assumption

Two firms are competing in an oligopolistic industry. Firm 1, the larger of the two, is contemplating its capacity strategy, which we can broadly characterize as "aggressive" or "passive." The "aggressive" strategy involves a large increase in cap..

  Show what is going on in the economy after minimum wage

under pressure from lobbying groups the president of a newly-independent country implements a minimum wage of 6hour.

  The news headlines during late 2012 and early 2013 were

the news headlines during late 2012 and early 2013 were predominantly encompassed by the numerous deliberations between

  Why might a profitable motel shut down in the long run

Which of the following is (are) most likely to be produced under conditions resembling perfect competition - automobiles, beer, corn, diamonds, and eggs. Defend your answer in economic terms.

  Test the belief using a significance level of 5 describe in

the life insurance industry maintains that the average worker in saskatoon has no more than 25000 of personal life

  Question about marginal benefit curves

When negative or positive externalities exist economists say that market has unsuccessful to make the right amount of the good at the right price. What do economists mean through this?

  Kind of decision that can be made at margin

Which of the following is a kind of decision that can be made at margin. whether to hire new workers or not ,whether to go on vacation or not or else.

  Would this tactic really bring in more revenue

Suppose that you are an officer of your campus theatre club. You are at a meeting called to discuss ticket prices. One member says, "What I hate to see most of all is empt seats in the theatre. We sell out every weekend performance; however there are..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd