Mechanical engineering has invented money machine

Assignment Help Financial Management

Reference no: EM131822082

Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $ 100 . ?However, once? built, the machine will last forever and will require no maintenance. The machine can be built? immediately, but it will cost $ 1,000 to build. Your buddy wants to know if he should invest the money to construct it. If the interest rate is 9.5 % per? year, what should your buddy? do? What is your advice if the machine takes one year to? build? The NPV of the machine is ?$nothing.

Reference no: EM131822082

Questions Cloud

Granted for solutions that include an explanation : Provide a sentence explaining your reasoning for each pair of variables. Extra credit will only be granted for solutions that include an explanation.

Estimate the value and do back of envelope calculation : Think about what’s going on and how you might estimate the value and do a back of the envelope calculation.

Study measuring how nutritional status : You are asked to design a study measuring how nutritional status is related to serum lead levels in children.

Compute taxable income and income tax payable : Prior to 2010, taxable income and pretax financial income were identical. Compute taxable income and income tax payable for 2011

Mechanical engineering has invented money machine : Your buddy in mechanical engineering has invented a money machine. What is your advice if the machine takes one year to? build?

Discuss three benefits of regulating company disclosures : The articles must have been published in the last 5 years i.e. 2012 onwards. Discuss three benefits of regulating company disclosures.

Own business and is considering investment : Marian Plunket owns her own business and is considering an investment. What is the NPV of this opportunity if the interest rate is 2 % per? year?

Compute the beginning inventory balances of finished goods : The cost of goods completed was $970. The cost of direct materials requisitioned for production during 20X1 was $328. The cost of direct materials purchased.

Lafayette residents support the local minor : A sportswriter wants to know how strongly Lafayette residents support the local minor league baseball team

User Account

All Pages