Owner of a building to pay for a new sprinkler system

Assignment Help Microeconomics

Reference no: EM13692454

What is the maximum it would be reasonable for the owner of a building to pay for a new sprinkler system if it would save $843 per year in insurance premiums? Assume it would have a life of 20 yrs and a salvage value equal to 10% of it's first cost. Assume also that the owner would like to make at least 7% on his investment. Provide answer with two decimal place precision.

I need the steps please and how to do it in excel

Reference no: EM13692454

Questions Cloud

It would always be a mistake to view : It would always be a mistake to view

Interest rate-compounded monthly : The average age of engineering students at graduation is a little over 23 years. This means that the working career of most engineers is almost exactly 500 months. How much would an engineer need to save each month to become a millionaire by the end ..

The present worth for this investment is : A new punching machine will cost $3,692. At the end of its 10 years useful life, the machine can be sold for $751. The new machine will reduce annual expenses by $537. The interest rate is 10%.

Owner of a building to pay for a new sprinkler system : What is the maximum it would be reasonable for the owner of a building to pay for a new sprinkler system if it would save $843 per year in insurance premiums? Assume it would have a life of 20 yrs and a salvage value equal to 10% of it's first cost.

Marginal cost is below average total cost : If marginal cost is below average total cost, average total cost will. A firm's marginal cost curve above its AVC is also its short-run supply curve.

Annual expense is estimated : The annual income from an apartment complex is $21,809. The annual expense is estimated to be $2,607. The apartment complex could be sold for $122,149 at the end of 10 years. If your MARR is 10%, how much should you pay for the apartment complex if y..

Expansionary-the natural employment deficit falls : Suppose we have an economy in which G = 100, t = 0.26, Y = 3800, and YN = 4000. Then t rises to 0.28 as the same time as G rises to 1150. The overall impact of this resettling of the fiscal variables is ________ because ________.

Make collusion at the monopoly price sustainable : Suppose there was a Bertrand duopoly. Each firm produces the product at constant average (and marginal) cost $10, and the demand for the product is given by Q = 5000 ? 100P If the Bertrand game is played in a single period, how much will each firm ch..

User Account

All Pages