Evaluate purchases estimate the cost to purchase new piece

Reference no: EM13687013

Remerowski Corporation Inc. asks you to estimate the cost to purchase a new piece of production equipment in the past for $10000 the original equipment had a capacity of 2,000 units, while the new equipment has a capacity of 1000 units. The power-sizing exponent for this kind of equipment is 0.28. In addition, the cost index for this kind of equipment is 126 when the original unit was purchased and is now160. If Remerowski usesan 8 percent annual interest rate to evaluate purchases estimate the cost to purchase the new piece.

Reference no: EM13687013

Questions Cloud

Corporate bond yields rise while treasury bond yields fell : The US treasury isn't the only issue of bonds. Corporations also issue bonds that have future payment structures like U.S. Treasuries. Of course, unlike the federal government, corporations can go bankrupt, leaving their bondholders unable to collect..

Compute the current yield and the coupon rate : Consider a $1,000.00 face value bond with a $40 annual coupon and 8 years until maturity. Compute the current yield and the coupon rate for each of the following: The bond is purchased for $850

Money market as institutions sell bonds to obtain more money : If the real money demand is greater than the real money supply interest rates must rise to reach equilibrium in the money market as institutions sell bonds to obtain more money.

Presume a treasury bill has a purchase price : Presume a Treasury bill has a purchase price of $9850; a face value of $10,000 and 99 days to maturity. Compute the yield to maturity. Answer as a percent and round to two decimal places

Evaluate purchases estimate the cost to purchase new piece : Remerowski Corporation Inc. asks you to estimate the cost to purchase a new piece of production equipment in the past for $10000 the original equipment had a capacity of 2,000 units, while the new equipment has a capacity of 1000 units.

Painting operation is performed by a production worker : A painting operation is performed by a production worker at a labor cost of $1.40 per unit. A robot spray-painting machine, costing $15000 would reduce the labor cost to $0.20 per unit. If the device would be valueless at the end of three years, what..

Is an auction a game : Hundreds of millions of people bid on eBay auctions to purchase goods from all over the world. Despite being carried out on line, in spirit these auctions are similar to those that have been conducted for centuries. Is an auction a game? Why or why n..

Drive politicians to impose anti-dumping measures : Big-Mac Index can be used as a yardstick for determining whether a currency is undervalued or overvalued. This is an important issue in politics, as complaints from producers and trade unions about unfair competition from countries with undervalued c..

What number of units of annual production : Company A has fixed expenses of 15000 per year and each unit of product has a $0.20 variable cost. company B has fixed expenses of 5000 per year and can produce the same product at a $0.50 variable cost. At what number of units of annual production w..

User Account

All Pages