What is the annual equivalent expense during years

Assignment Help Econometrics
Reference no: EM13235794

Major overhaul expenses of $5,000 each are anticipated for a large piece of earthmoving equipment. The expenses will occur at EOY four and will continue every three years thereafter up to and including year 13. The interest rate is 12% per year.

a) Draw a cash-flow diagram.
b) What is the present equivalent of the overhaul expenses at time 0 ?
c) What is the annual equivalent expense during only years 5-13 ?

Reference no: EM13235794

Questions Cloud

Determine the initial volume of mercury : You are designing a precision mercury thermometer based on the thermal expansion of mercury, Determine the initial volume of mercury that allows this change, Find the radius of a spherical bulb that contains this volume of mercury
Define the dissolution of the sulfides of copper : Explain the dissolution of the sulfides of copper, bismuth and cadmium in nitric acid. Include ionic equations. If a yellow precipitate is obtained upon addition of hydrogen sulfide to an unknown solution of Group II cations, which ions are probably..
Which of the system represents interrelated activities : Which of the following system represents interrelated activities?
Which of the following management function includes setting : Which of the following management function includes setting standards for everyone in the organization?
What is the annual equivalent expense during years : Major overhaul expenses of $5,000 each are anticipated for a large piece of earthmoving equipment. The expenses will occur at EOY four and will continue every three years thereafter up to and including year 13.
Explain the redox reaction of peroxydisulfate with iodide : The redox reaction of peroxydisulfate with iodide has been used for many years as part of the iodine clock reaction which introduces students to kinetics. If Eºcell = 1.587 V and Eº of the anode half-cell is 0.536 V, what is Eº of the cathode half..
What is the magnitude of the centripetal acceleration : A car travels at a constant speed around a circular track whose radius is 3.1 km, What is the magnitude of the centripetal acceleration of the car
Explain the reaction has a half-life : The decomposition of SO_2_Cl_2_ is first order in SO_2_Cl_2_ , and the reaction has a half-life of 245 min at 600 K. If you begin with 3.6e-3 mol of SO_2_Cl_2_ in a 1.0-L flask, how long will it take for the sample to decrease to 3.2e-4
How are learning organizations defined by professionals : How are learning organizations defined by professionals in the field and what are three characteristics of a successful learning organization?

Reviews

Write a Review

Econometrics Questions & Answers

  Which alternative should select use present worth analysis

The alternatives are, Alternatives Cash flow A B C Installed cost $12,250 $14,000 $16,500 Uniform annual Benefit $ 2,750 $ 2,700 $ 2,950 Salvage value $ 1,500 $ 2,500 $ 5,500 Useful life in Years 8 12 12 Due to the unknown rate of technology trans..

  What will be the effect of an increase of per unit variable

Suppose that a perfectly competitive consant cost industry if initially in short and long-run equilibrium. In general, what will be the effect of an increase of $10 per uni in varialbe coss on he short-run equilibrium price, the short-run industry..

  What is the expected return on the equity

Company A just paid a $3.00 dividend per share. The dividend is expected to grow at a 4% rate indefinitely. The beta of the stock of Company A is 1.5. The market risk premium is 8% and the risk-free rate is 3%. (a) What is the expected return on t..

  What is the optimal level of pollution

The cost of pollution (in billions of dollars) originating in the paper industry is Cp = 2P + P2. Where P is the quantity of pollutants emitted (in thousands of tons). The cost of pollution control (in billions of dollars) for this industry is Cc ..

  Provide an economic interpretation for each equation

There is a single difference: we've changed the exponent on At in the production function of the output good so that there is now a diminishing marginal product to ideas in that sector. 1. Provide an economic interpretation for each equation.

  Determine equations to find pw of each machine

Determine the proper equations to find PW of each machine. The cost of money is 10% per year. Machine X         Machine Y Initial cost, $   -55,000  -46,000 Annual cost, $/year   -10,000 -15,000

  What factors should a winner consider in determining money

In many states with lotteries, people can take their winnings in a single, discounted, lump-sum payment or in a series of annual payments for 20 to30 years. What factors should a winner consider in determining how to take the money

  Is demand elastic or inelastic in the price range

(a.) Is demand elastic or inelastic in the $6-$8 price range How do you know (b.) If the table represents the demand faced by a monopoly firm, then what is that firm's marginal revenue as it increases output from 1700 units to 2300 units

  Determine what percentage of retail jobs would be lost

Joe Sabia, an assistant professor of public policy at American University in Washington, D.C., says that a 10 percent increase in minimum wage reduces retail employment by 1 percent and reduces employment among young workers by 3.4 percent.

  Calculate the present worth of the gifts

Autie Frannie wants to help pay for her twin nephews to attend a private school. She intends to send a cheque for $2,000 at the end of each of the next eight years to apply to the cost of schooling. a) If general price inflation, as well as tuiti..

  Find what will be the percentage increase in daily sales

The manager of Collins Import Autos believes the number of cars sold in a day (Q) depends on two factors: (1) the number of hours the dealership is open (H) and (2) the number of salespersons working that day (S). After collecting data for two months..

  What percentage of students have an sat verbal score

The national average for the verbal portion of the College Board's Scholastic Aptitude Test (SAT) is 507. The College Board periodically rescales the test scores such that the standard deviation is approximately 100.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd