New alcohol distribution system to keep your bartenders

Assignment Help Operation Management

Reference no: EM1388207

You are the owner of a local beach bar and you are considering the purchase of a new alcohol distribution system to keep your bartenders from swiping all of your good stuff. The new system will cost $20,000 and will reduce working capital (investment in alcohol) by $20,000. The system will be sold to the competition for $19500(Net after tax) at the end of the five year useful life. The new equipment is expected to generate an OCF of $46,500 per year. Given this, what is the IRR of the investment?

Answer: 9.12%

How would I input the information properly yo get the IRR?

Reference no: EM1388207

Questions Cloud

How many different code groups can be designed : Repetitions of numbers are not permitted, i.e., the same number cannot be used more than once in a total sequence. As examples, 27, 94 or 55 would not be permitted. How many different code groups can be designed?

Payback period and net present value : The Management Accountant of Derby Ltd has produced the following cost estimates relating to the proposal over the next five years: Calculate the transport fleet project - Payback period and net Present Value

Route of a bacterium from the vaginal opening : The external environment is open directly to the peritoneal cavity of the abdomen and pelvis. This is one source of pelvic inflammatory disease.

Legal ramifications of illegible entries : What should you do in this situation? Explain. In what ways do you think poor legibility impacts different users of medical records? Critically discuss some of the legal ramifications of illegible entries?

New alcohol distribution system to keep your bartenders : You are the owner of a local beach bar and you are considering the purchase of a new alcohol distribution system to keep your bartenders from swiping all of your good stuff

Population standard deviation for red blood cell : A simple random sample of 50 adults is obtained, and each person's red blood cell count (in cells per micro-liter) is measured. The sample mean is 5.23. The population standard deviation for red blood cell counts is 0.54.

A company is considering a new venture : A company is considering a new venture. This venture will require the purchase of $550,000 of equipment (which will be depreciated straight-line to zero over the life of the project and will have no salvage value)

Describe basic wireless network maintenance functions : Describe basic wireless network maintenance functions. Producers are continuously releasing firmware upgrades for their products. If you were manager of WLAN.

What are the major threats to google''s ability : What are the major threats to Google's ability to serve its stakeholders

User Account

All Pages