What is rate of return on this machine

Assignment Help Financial Management

Reference no: EM131565991

A new punching machine will cost $150,000. It has a life of 10 years with no salvage value. During its life, it is anticipated to save company $25,000 per year. What is Rate of Return (ROR) on this machine

11.52%

10.56%

12.05%

10.00%

Reference no: EM131565991

Questions Cloud

Explain how this can occur if the stock market is efficient : Explain how this can occur if the stock market is efficient.

Equipment leasing for bulgarian agricultural business : Farmers and businessmen in Bulgaria (EU) can lease equipment and pay for it over time instead of raising money up front to buy it,

Find the minimum euac of this drill press and economic life : Find the minimum EUAC (to the closest dollar) of this drill press and its economic life (in years) and enter it here:

Optimize portfolio consisting of two stock and cash invested : Optimize a portfolio consisting of two stocks and cash invested at the risk free rate given that the maximum tolerable risk is portfolio sigma = 0.1, r = 0.01,

What is rate of return on this machine : During its life, it is anticipated to save company $25,000 per year. What is Rate of Return (ROR) on this machine

Assume prefers fixed rate and prefers floating rate : Assume A prefers fixed rate and B prefers floating rate. What is the net cost to each party in the swap?

What traits of an effective capital allocation process : What traits of an effective capital allocation process are vital for a healthcsare organization to consider?

Assume the net capital gains tax rate : Four years ago, Mr. Moneypenny purchased a rare coin for $1,000. Today he sold the coin for $5,000. Assume the net capital gains tax rate is 15%.

Binomial pricing or monte carlo method : Binomial pricing or Monte carlo method? Binomial method seems a bit tedious.

User Account

All Pages