What is the annual worth of the investment

Assignment Help Business Economics

Reference no: EM13772376

An office supply company has purchased a light-duty delivery truck for $15,000. It is anticipated that the purchase of the truck will increase the company’s revenue by $10,000 annually, while the associated operating expenses are expected to be $3,000 per year. The truck’s market value is expected to decrease by $2,500 each year it is in service. If the company plans to keep the truck for only two years, what is the annual worth of the investment? The MARR = 18% per year.

Reference no: EM13772376

Questions Cloud

Environmental permit-waste handling and worker compensation : You are the environmental compliance officer at a company that is setting up a new paint coating line. Describe the steps you would take to determine if any hazardous wastes will be generated during processing which will need disposal. If there ar..

Maquiladoras south of the border : Two hundred thousand Mexicans rush to Juarez each year, fleeing the hopelessness of the rural areas in pursuit of a better life.

What is the equivalent uniform annual cost over the entire : Maintenance costs for a small bridge with an expected 50-year life are estimated to be $1,000 each year for the first five years, followed by a $10,000 expenditure in year 15 and a $10,000 expenditure in the year 30. If I = 10% per year, what is the ..

What is the capitalized worth of system-sewage system : A city is spending $20 million on a new sewage system. The expected life of the system is 40 years, and it will have no market value at the end of it life. Operating and maintenance expenses for the system are projected to average $0.6 million per ye..

What is the annual worth of the investment : An office supply company has purchased a light-duty delivery truck for $15,000. It is anticipated that the purchase of the truck will increase the company’s revenue by $10,000 annually, while the associated operating expenses are expected to be $3,00..

Convert synthesis into liquid with some gaseous hydrocarbons : The Fichser-Tropsch (F-T) process was developed in Germany in 1923 to convert synthesis gas (i.e., a mixture of hydrogen and carbon monoxide) into liquid with some gaseous hydrocarbons. Interestingly the F-T process was used in World War II to make g..

How many part-time board members are on the board : In the Code of Federal Regulations, 6 C.F.R. § 1000.3 provides for the composition of the federal Privacy and Civil Liberties Oversight Board. How many part-time Board members are on the Board

Current monetary policy expansionary or contractionary : Is the current Monetary Policy expansionary or contractionary? Why? What effect doe the Federal Reserve expect this policy to have on the US economy?

Who benefits from this information being collected : In a 2-3 page essay, discuss National Crime Victimization Survey. What are the strengths and weaknesses of the NCVS? How is the data gathered? Who benefits from this information being collected

User Account

All Pages