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The Plant Department of the local telephone company purchased four special pole hole diggers 8 years ago for $14,000 each. They have been in constant use to the present. Owing to an increased workload, additional machines will soon be required. Recently an improved model of the digger was announced. The new machines have a higher production rate and lower maintenance expense than the old machines but will cost $32,000 each with a service life of 8 years and salvage value of $750 each. The four original diggers have an immediate salvage of $2000 each and an estimated salvage value of $500 each 8 years hence. The average annual maintenance expense of the old machinesis about $1500 each, compared with $600 each for the new machines. A field study and trial show that the workload would require three additional new machines if the old machines continue in service. However, if the old machines were all retired from service, the workload could be carried by six new machineswith an annual savings of $12,000 in operation costs. A training program to prepare employees to run the machines will be necessary at an estimated cost of $700 per new machine. If the MARR is 9% before taxes, what should the company do?
q1. the abc corporation is contemplating purchasing a new computer system that would yield a before-tax return of 30.
Fill in the blanks in the following explanations: a. The real wealth effect is described by the following: An increase in the price level leads to a(n) __________ in real wealth, which leads to a(n) __________ in purchasing power, which leads to a(n)..
Illustrate what are some examples of e-mail differences that causes frustration. Has the Weiner developed an effective comparison essay.
Suppose the income elasticity of demand for pre-recorded music compact disks is +4 and the income elasticity of demand for a cabinet maker's work is +0.4. Compare the impact on pre-recorded music compact disks and the cabinet maker's work of a recess..
New buses for a mass-transit agency cost $10 million and are expected to last for 10 years with a $1 million salvage value. The buses cost $500,000 to operate and maintain each year. If the system is used for 624,318 trips per year, with the average ..
Should the United States pass a minimum wage that assures all workers earn a wage above the level of poverty.
In Country 1 the rate of investment is 5%, and in Country 2 it is 20%. The two countries have the same level of productivity.
You are in charge of managing a small group of rental car offices. Some customers are Costco and/or AAA members (“cardholders”), and these customers have been getting a discount on the weekly rate for the economy cars that you rent. For the time bein..
what money growth rate should the Fed aim for to hit its inflation target in that period? If the Fed instead maintained the money growth rate from part a, what is likely to happen to inflation.
The cost of delay is an important expense to consider when redesigning a procedure. In addition, there is uncertainty in identifying future needs and new procedure that the space will need too accommodate.
Identify and discuss a benefit that NAFTA has produced fo the United Stateseconomy. What are the main economic and political arguments for regional economic integration? Do you think it is correct for the European Commission to restrict mergers betwe..
4,000,000 stems were sold that week. During the week of June 5-11, the rose market cleared at a price of $0.20 per stem and 3,800,000 roses were sold. From this information what would you conclude about the price elasticity of supply in the rose ..
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