User Account

All Pages

GPS systems are required to make it economically feasible

Assignment Help Financial Management
Reference no: EM132044331

Derek has his own company in which he sells bass fishing boats. He purchases GPS systems at $40,000 per system per year and installs them on the boat. I want to purchase a building which will cost $500,000 and build my own GPS systems. It will cost $30,000 per system per year. After 15 years, I will sell the building for $100,000 and retire. What is the minimum annual number of GPS systems are required to make it economically feasible? The interest rate is 10%. Show work and givens.

Reference no: EM132044331

Questions Cloud

Your first payment will be made in one month : Upon graduation, you realize you have accumulated $30,000 in student loans. Your first payment will be made in one month.
Does this create disbursement float or collection float : Does this create a disbursement float or a collection float? What is your book balance?
Calculate required rate of return on security with beta : The risk-free rate is 5% and the expected rate of return on market portfolio is 12%. Calculate the required rate of return on a security with a beta of 1.35.
Corporation is going to invest in new piece of equipment : The ABC Corporation is going to invest in a new piece of equipment which will cost $275,000 and falls into 5-year MACRS property.
GPS systems are required to make it economically feasible : What is the minimum annual number of GPS systems are required to make it economically feasible?
Accumulated liabilities and future liabilities : At the end of 3 years he desires to pay the tractor by a single payment which will cancel both his accumulated liabilities and his future liabilities.
Considering adding miniature golf course to its facility : Marge's Campground is considering adding a miniature golf course to its facility. Is there a tax liability or tax credit on the sale of the equipment?
Projected total assets and additional funds : Calculate projected total assets and additional funds needed for 2018.
The company you work for is performing overall : As an IT manager, it is imperative to know how well the company you work for is performing overall.

Reviews

Write a Review

Financial Management Questions & Answers

  Project evaluation and capital investment

Project Evaluation and Capital Investment. Project Cash Flow (Use Cash Flow From Assets [CFFA]) in Year 1

  Firm loses value during bankruptcy process

Explain how a firm loses value during the bankruptcy process from both a creditors and a shareholders perspective.

  Ethics and compliance in the health care finance environment

Assess the role of ethics and compliance in the health care finance environment.

  Formulate for YTM-Duration and Volatility of bond

What are the formulate for YTM, Duration, and Volatility of a bond.

  Cash dividend pay no cash dividends pay less dividends

According to the residual theory of dividends, if a firm's equity need exceeds the amount of retained earnings, the firm would borrow to pay the cash dividend sell additional stock to pay the cash dividend pay no cash dividends pay less dividends.

  Fast-growing firm recently paid a dividend

A fast-growing firm recently paid a dividend of $0.80 per share. The dividend is expected to increase at a 15 percent rate for the next three years. Afterwards, a more stable 11 percent growth rate can be assumed. If a 12 percent discount rate is app..

  Common shares of laurence incorporated

Suppose you own 3,000 common shares of Laurence Incorporated. The EPS is $8.00, the DPS is $4.25, and the stock sells for $90 per share. Laurence announces a 2-for-1 split. Immediately after the split, how many shares will you have? What will the adj..

  What is the annualized cost of the oven

A bakery decides to buy an oven. This oven will cost $7000 and is expected to last for 15 years. Annual operation and maintenance costs for the oven is 350 dollars per year and the salvage value for this type of oven is usually 4% of the original cap..

  Equires an initial fixed asset investment

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $1,860,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worth..

  Relate to the efficient market hypothesis

How does your answer relate to the efficient market hypothesis?

  What amount of the payroll department costs

Medusa Company allocates costs from the payroll department (S1) and the maintenance department (S2) to the molding (P1), finishing (P2), and packaging (P3) departments. Medusa uses the direct method to allocate costs. Round all answers to the nearest..

  Regional healthcare system is for-profit entity

Regional Healthcare System is a for-profit entity and is planning to purchase an MRI and ultrasound equipment for its new imaging center. The equipment will generate $3,000,000 per year in revenues for the next (5) years. The expected operating expen..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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