User Account

All Pages

Percent and the required rate of return

Assignment Help Business Economics
Reference no: EM132319631

How could excel be used to solve this problem?

Your firm is considering the purchase of a new piece of equipment for $30,000.

The equipment will be straight line depreciated over four years. The salvage value (final book value) is 10 percent of the purchase price. The equipment will increase the earnings before interest, tax and depreciation by $8000 for each of the four years the equipment is used. The tax rate is 21 percent and the required rate of return is 10 percent.

What is the NPV?

No. NPV = - 2390.93

No. NPV = - 6551.38

No. NPV = - 3108.10

Reference no: EM132319631

Questions Cloud

Continue the process of raising interest rates : If the FED decides to continue the process of raising interest rates, what is the likely response of firms and households to the increased cost of borrowing?
Living in a college dorm : What effect would a rule stating that university students must live in university dormitories have on the price elasticity of demand for dormitory space?
How do non-portuguese scholars view lusotropocalism compared : According to António Costa Pinto, "Many studies of modern dictatorships ignore the figure of the leader. In the case of António Salazar - how do non-Portuguese
Whats the purpose of using an rfp : How do proposal writers use an RFP? Whats the purpose of using an RFP?
Percent and the required rate of return : The equipment will be straight line depreciated over four years. The salvage value (final book value) is 10 percent of the purchase price.
Define the concept of collegial relationships : Define the concept of collegial relationships. List and explain the four levels of communication. Explain the total quality philosophy of training
Implicit and explicit costs of this venture : For this assignment, consider an event at work that you company is considering doing, such as a new product, adding more employees, etc.
What are linear and nonlinear occupations : Discuss the changing economic role of African Americans in the United States from 1865 to the present. What were the major factors
What is the expected value of petra wealth : If her car is totaled in an accident, her wealth will be reduced by $50,000. She thinks the probability of that happening is 5%.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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