What is the break-even value for the investments duration

Reference no: EM13183711

For a $500,000 investment in a machine:
(a) Based on a 10-year planning horizon, a $50,000 salvage value, and a 10 percent MARR, what annual savings are required for the investment
to break even?
(b) Assume $92,500 is an accurate estimate of the annual savings that will result from this investment, but it is not clear how long the machine
will be used. Assuming that the salvage value decrease linearly from $500,000 to $50,000 over a 10-year in the s What is the break-even value
for the investment's duration?

Reference no: EM13183711

Questions Cloud

State expression for v as a function of t : is independent of pressure. By doing so, obtain an expression for V as a function of T and ? at fixed P.

Define produce high-purity silicon dioxide : One of the steps in purifying silicon involves reacting the intermediate silicon tetrachloride with steam to produce high-purity silicon dioxide and hydrogen chloride gas

Examine how sensitive the annual worth for the investment : Consider a $500,000 initial investment, annual savings of $92,500 for a 10-year period, a salvage value of $50,000, and a 10 % MARR applies. Using a spider plot, examine how sensitive the annual worth for the investment is to errors in estimating ..

Compute the total mass of sodium chloride : If the volume of ocean water 5.4*10^20) contains 4.1 percent sodium chloride ("salt") by mass and the density of the water is 1.86 g/mL, calculate the total mass of sodium chloride.

What is the break-even value for the investments duration : Assume $92,500 is an accurate estimate of the annual savings that will result from this investment, but it is not clear how long the machine will be used. Assuming that the salvage value decrease linearly from $500,000 to $50,000 over a 10-year in..

Depict the molecular structure of three monomeric units : Draw the molecular structure of three monomeric units of the addition polymer that results from polymerization of acetylene. Only show the structure that would be found inside the brackets of a condensed formula for this polymer

Show the calculations that lead to the conclusions : If the firm has $20,000 on hand, with only these two project to choose from, will they invest in A, B, neither or both? Show the calculations that lead to your conclusions. Explain whether you answers would be different for either project if the f..

Define chemiluminescence reaction will actually occur slowly : chemiluminescence reaction will actually occur very slowly in air. What component of air will bring about this reaction and what is its approximate concentration in air?

What is the corporate marr : Consider the tax depreciation for a $1,000 investment using both the modified accelerated cost recovery system (MACRS) and the straight line depreciation accounting systems. Show that the MACRS system is more beneficial economically. Use a 5-year ..

User Account

All Pages