Return of the bio filtration system and the membrane system

Assignment Help Business Economics

Reference no: EM13885657

The capital cost of the membrane treatment system is $500,000 with operating costs at $100,000 occuring biannually with additional $25,000 per year for contract services. The capital cost of the biological treatment unit is $800,000 with operating costs including sludge removal at $40,000 annually with additional service contract with $10,000 annually. The discount rate is 5% and two systems are compared for 20 years of use.

1) Draw cash flow diagram for each system demonstrating the first 10 years of use.

2) What is the total net equivalent present value (year 0) for the bio filtration system and membrane system? (Includes both salvage value and maintenance)

3) Define payout and describe how you would calculate it.

4) What is the rate of return of the bio filtration system and the membrane system?

Reference no: EM13885657

Questions Cloud

Drug companies to perform their clinical testing of new drug : In recent years it has become an increasingly popular practice for drug companies to perform their clinical testing of new drugs in foreign countries that might not have the consumer protections or product liability laws present in the United States...

Discuss advantages of a firms repurchasing its own shares : Discuss the advantages and disadvantages of a firm's repurchasing its own shares. What is meant by the term "distribution policy"? How has the mix of dividend payouts and stock repurchases changed over time?

The traveling salesman problem is a somewhat misleading : The traveling salesman problem (TSP) is a somewhat misleading title as it does not always relate to a salesman.

What are the basic steps of content analysis : What are the types of research design where content analysis is used, How is content analysis carried out manually and What are the basic steps of content analysis?

Return of the bio filtration system and the membrane system : The capital cost of the membrane treatment system is $500,000 with operating costs at $100,000 occuring biannually with additional $25,000 per year for contract services. Draw cash flow diagram for each system demonstrating the first 10 years of use...

Write a brief summary of the given article : You will do a web search and find an article about "Today's Diversity in the Workplace". Please write a brief summary of the article

Absolute value of the price elasticity of demand of product : Suppose that the price of product A decreases from $27 to $14 and, as a result, the quantity traded of A increases from 175 to 210, the quantity traded of B increases from 65 to 100 and the quantity traded of product C falls from 505 to 400. What is ..

What factors do you think would influence your team : As a leader, what factors do you think would influence your team's attitudes and job satisfaction? Which factor would be most important. Why

Generally pay the higher interest rate : For which two bonds would you expect to generally pay the higher interest rate, a U.S. government bond or a municipal bond with the same term and issued by a creditworthy municipality and explain why?

User Account

All Pages