What is the annual worth of this investment

Assignment Help Financial Management
Reference no: EM13721654

Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $18,500 per year. An emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle’s MARR is 10 %/year.

What is the annual worth of this investment?

Reference no: EM13721654

Questions Cloud

Construct stephensons market value balance sheet : Stephenson Real Estate Company was founded 25 years ago by the current CEO, Robert Stephenson. The company purchases real estate, including land and buildings, and rents the property to tenants. The company has shown a profit every year for the past ..
What is the return on investment in life insurance : You purchase a $100,00 life insurance policy for a single payment of $35,000. If you want to earn 9 percent on invested funds, how soon must you die for the policy to have been the superior alternative? If you die within ten years, what is the return..
Present value and future value annuities and annuity dues : Discuss present value and future value annuities and annuity dues. What is the timing of cash flows? What are their differences? What are the advantages of both? How are they used by financial management?
Capital expenditure that requires an initial investment : Payback period Jordan Enterprises is considering a capital expenditure that requires an initial investment of $42,000 and returns after-tax cash inflows of $7,000 per year for 10 years. The firm has a maximum acceptable payback period of 8 years.
What is the annual worth of this investment : Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $18,500 per year. An emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle’s MARR is 10 %/year. What is t..
Calculate the yield using a geometric average : One-year Treasury securities yield 3.5%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 6.45%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield..
What is the yield to maturity of a bond that sells : What is the yield to maturity of a bond that sells for $1,045 today and pays $30 every six months and matures in 12 years if bonds issued today are paying $40.00 annually?
Discussion on the different bond features : Please provide a thorough discussion on the different bond features someone might consider pref. For example, some bonds are tax free (municipal bonds), some are insured. Of course there is a trade off between risk and return. Do you think that there..
Manufacturing is considering upgrading a piece of equipment : A manufacturing is considering upgrading a piece of equipment. If a certain upgrade helps reduce operating costs by $750 per hour of use, and the upgraded equipment will be used on average 8 hours per day, what is the expected annual savings of upgra..

Reviews

Write a Review

Financial Management Questions & Answers

  How did the international monetary fund imf reassign the

your firm is expanding into europe and your department head has asked you to put together a report on monetary unions

  Not-for-profit acute care facility

General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services:

  What is the price of maxwells stock today

What is the price of Maxwell's stock today and what is the expected payout ratio if Martha Stewart's uses the residual distribution model to determine next year's distribution and makes all distributions in the form of dividends?

  Find cost of debt - estimate cost of equity

How you estimated the percentage of capital that comes from debt, and common equity - find cost of debt

  What is the total annual cost of operating the lockbox syste

What is the total annual cost of operating the lockbox system and what is the dollar benefit of the system to Drugs R Us?c. Should the firm initiate the lockbox system?

  Calculate the balance sheet-based accruals and cash flow

calculate the balance sheet-based accruals and cash flow-based accruals ratios. Analyze the ratios and other information,of Wal -Mart and write an assessment of financial reporting quality.

  Compare the hedging alternatives for the eur receivables

Compare the hedging alternatives for the EUR receivables with a scenario under which Yankee remains unhedged and Compare the hedging alternatives for the MYR with a scenario under which Yankee remains unhedged -Do you think Yankee should hedge or r..

  Homework adams food service has issued 7 38 bonds that

ltbrgtadams food service has issued 7 38 bonds that mature on july 15th 2042. the bonds are callable 1037.08 on july

  Influence human rights issues

Discuss the following topic - Should trade restrictions be used to influence human rights issues

  Preparation of accounting information

Discuss the positive and negative implications of permitting choice in the preparation of accounting information

  Horizontal analysis mary lynn corporation has been

horizontal analysis. mary lynn corporation has been operating for several years. selected data from the 20x1 and 20x2

  Find arrows variances for factory overhead

Evaluate Arrow's direct material variances, compute Arrow's direct labor variances and find Arrows variances for factory overhead.

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