Qin 2020 ahmed decides to invest in a wind turbine that

Assignment Help Business Economics

Reference no: EM13352299

Q. In 2020, Ahmed decides to invest in a wind turbine that would produce and sell electricity to the local electric utility. He decides to buy a smaller, used turbine. It will cost $1841 to purchase the turbine this year, and another $582 in parts and labor will be needed this year to get this ready for service. After 5 years of use (and during year 2026), he estimates that it will cost $748 to rebuild the turbine and there will be no revenue from production that year. Ahmed estimates that the net cash flows (after depreciation and taxes) will be $559 each year in years 2021, 2022, 2023, 2024, 2025 and $687 each year in years 2027, 2028, 2029, and 2030. The turbine will be taken out of service at the end of year 2030 and there will be no salvage value. The Minimum Acceptable Rate of Return (MARR) (the interest rate) is 8 percent per year, compounded annually. What is the Benefit/Cost ratio of this turbinein year 2020)? (Express your answer to two decimal places of accuracy.) Benefit/Cost ratio = ?

Reference no: EM13352299

Questions Cloud

Qcovington corporation purchased a vibratory finishing : q.covington corporation purchased a vibratory finishing machine for 20000 in year 0. the useful life of the machine is

Q assume that the production function for all countries is : q. assume that the production function for all countries is given by y ak13. assume that the depreciation rate d and

Q1 in signaling model assume high school graduates are paid : q1. in signaling model assume high school graduates are paid a stream of income whose present value is 200000. college

Qfor the questions below write an explanation of the : q.for the questions below write an explanation of the short-run effect including the determinant of ad or as that is

Qin 2020 ahmed decides to invest in a wind turbine that : q.in 2020 ahmed decides to invest in a wind turbine that would produce and sell electricity to the local electric

Qthis problem uses the solow model to analyze the eects of : q.this problem uses the solow model to analyze the e?ects of immigration. suppose that the economy is initiallyin

Q1in signaling model assume high school graduates are paid : q1.in signaling model assume high school graduates are paid a stream of income whose present value is 200000. college

Q assume a duopoly and let demand be given by pa-bq in : q. assume a duopoly and let demand be given by pa-bq. in addition let both firms have the same marginal cost c. the

Q1 if michael has 48 to spend on cola and pretzels what : q1. if michael has 48 to spend on cola and pretzels what combination should he purchase in order to maximize his

User Account

All Pages