What is the equivilent annual cost for keeping the computer

Assignment Help Econometrics

Reference no: EM13225000

Beth bought a computer 3 years ago for $3000, which she can now sell on the open market for $300. The local computer shop will sell her a new system for $4000, inlcluding the new graphic software that she wanted, although, she can cope with the software that she currently owns. Her own comptuer will last 2 more years, and will then have a salvage value of zero. The new computer will have a salvage value of 300 at the end of its economic life in 5 years. The net benifets of the new computer including the graphic software have a value of 800 per year. An adiitional feature is that the computer shop will give her 500 for her old computer on a trade in.

Interest = 15%

What is the equivilent annual cost for keeping her computer?

What is the equivilent annual cost for swithcing to the new system?

Reference no: EM13225000

Questions Cloud

Define what volume of solution must be administered per dose : To treat a thyroid tumor, a patient must be given a 170-mCi dose of iodine-131, supplied in a solution containing 41 mCi/mL. What volume of solution must be administered per dose?

What is most near to elins monthly car payment : Ellen purchased a used car for $10, 000. She wrote a check $2,000 as a down payment for the car and financed the $8,000 balance. The annual percentage rate (APR) is 9% compounded monthly, and the loan is to be repaid in equal monthly installments.

Determine six letters of the alphabet that belong : Find six letters of the alphabet that belong to C2v, Find at least one that belongs to D2h and at least one that belongs to D4h.

Compute the temperature in k for a blackbody radiation : Calculate the temperature in K for a blackbody radiation with ?max = 700 nm. ( the wavelenght corresponding to the maximum in the planck distribution at the temperature T)

What is the equivilent annual cost for keeping the computer : The local computer shop will sell her a new system for $4000, inlcluding the new graphic software that she wanted, although, she can cope with the software that she currently owns. Her own comptuer will last 2 more years, and will then have a salv..

State a titration is performed by adding koh : A titration is performed by adding 0.400 M KOH to 40.0 mL of 0.300 M HCl. What is the pH after addition of 20.0 mL of the base

What is the expected npv for the new machine : R&D planning. A firm is in the process of assessing the economic prospects for a new bottling machine it is developing. Future research and development expenses could range from $4 to $9 million, with a most likley value around 7$ million.

Overall effectiveness of a companys supply chain : Overall effectiveness of a companys supply chain - optimize the delivery of goods, services, and information from supplier to customer, balancing supply and demand

What is the future worth of the investment : The companies expect to invest $120 million upfront to set up the new unit. HoosierMaker expects to garner revenue of $9.5 million each year and spend $1.3 million a year in costs, over the next 7 years. What is the future worth of this investment..

User Account

All Pages