Prepare a graph for rate of return versus useful life

Assignment Help Business Economics

Reference no: EM131809387

A newspaper is considering buying locked vending machines to replace open newspaper racks in the downtown area. The vending machines cost $45 each. It is expected that the annual revenue from selling the same quantity of newspaper will increase $12 per vending machine. The useful life of the vending machine is unknown.

(a) To determine the sensitivity of rate of return to useful life, prepare a graph for rate of return versus useful life for lives up to 8 years.

(b) If the newspaper requires a 12% rate of return, what minimum useful life must it obtain from the vending machines?

Reference no: EM131809387

Questions Cloud

What about in the community setting : What about in the community setting? How does the epidemiologic triad differ when a nurse is providing care to someone in the community or in his home?

Importance of social media in strategic marketing : What is the importance of social media in the strategic marketing? Make a SWOT analysis based on the organisation in the given case study.

Assume the plane has a salvage value : Assume the plane has a salvage value at end of Year 10 of $13 million. Contributed by Paul R. McCright, University of South Florida.

Discuss the april purchases of trading securities : Prepare journal entries to record the April purchases of trading securities by Business Solutions

Prepare a graph for rate of return versus useful life : To determine the sensitivity of rate of return to useful life, prepare a graph for rate of return versus useful life for lives up to 8 years.

Create your personal web site : IWBS001 - develop all HTML and CSS code using notepad or a similar text based editor, use of Frontpage, DreamWeaver or other Web development software

Organisation culture-work climate is product of core values : The character of an organisation's culture or work climate is a product of the core values and business principles that executives espouse,

What income effects would be reported from its ownership : On Pine's financial statements for the year ended December 31, 2015, what income effects would be reported from its ownership in Seacrest

Estimate a multiple linear regression model : Estimate a multiple linear regression model and interpret its coefficients. Find the predicted value for y if x1 equals 50 and x2 equals 20.

User Account

All Pages