What is the ltw

Assignment Help Microeconomics
Reference no: EM131903194

Problem

A factory has to install a smoke reduction system or pay a fine of $10,000 per month. The design of the system is outsourced to an A&E firm for $60,000 and takes six months to complete. The assembly, installation, and test are to be done on site. The cost of material is $100,000, the cost of labor is $60,000, and it takes eight months to bring the system to the operational level and avoid the penalty payment. The system needs an equivalent of one person at $25,000 per year to operate. The life of the system is five years, and the cost of removal and salvage value are the same. What is the LTW? The payments are made at the end of performance. Do not consider tax and depreciation. Use a 10% per year interest rate.

Reference no: EM131903194

Questions Cloud

Calculate the ltw of the new passenger aircraft : Calculate the LTW of their new passenger aircraft. They have just finished their conceptual design. How do you start looking at this problem?
Prepare a powerpoint presentation for college students : You will create a PowerPoint presentation for college students,taking everything that you have learned from Parts 1 -2 to teach students 5 essential strategies.
What is the present value of his consulting contract : How much will you have after 18 years? but calculate your final answer using the formula and financial calculator methods.
Is the prudential regulation authority effective : Is the Prudential Regulation Authority ( PRA ) effective ? (Have they improved the sound and safety of banks ? And maybe some examples)
What is the ltw : What is the LTW? The payments are made at the end of performance. Do not consider tax and depreciation. Use a 10% per year interest rate.
What is the estimated net cash flow for end of year 1 : )Using the information in the previous question, what are the operating net cash flows for Years 3, 4, and 5?
What is the ships lifetime worth : The purchase costs of cargo ships are estimated to be $800 per ton. If the shipping company uses MARR of 6%, what is the ship's lifetime worth?
Write an philosophy essay on utilitarianism : I need to write an philosophy essay out Peter Singer on utilitarianism, happiness and ultimate good.
What is the equilibrium price and quantity for the escalade : Intermediate Microeconomics Assignment - Consider the demand for a Cadillac Escalade. What is the equilibrium price and quantity for the Escalade

Reviews

Write a Review

Microeconomics Questions & Answers

  What size has the higher mark up

Q1:= 7500 - 40 P1 + 25P2 , Q2:= 8000 + 20 P1 - 30 P2 , where Q1 and Q2 are the quantity demanded and P1 and P2 are the prices of first and second model. Determine the quantity/price combination of models that maximizes the producer's profit. What ..

  How major international global economic policies affect

How major international global economic policies affect modern international marketing functions in 3 paragraphs six lines each (2-3 references).

  Estimate for the tread life

The sample mean was 42,300 miles and the sample standard deviation was 7,500 miles. What is the 95% confidence interval estimate for the tread life of that entire model produced in the past month?

  What is the differences between sticky

What is the differences between sticky and flexible prices in the aggregated income or expenditure?

  Investment banking firms involves

Guaranteeing a price for new capital to the issuing firm.Selling stock over the Internet.Issuing stock and using the proceeds to purchase bonds.

  Discuss the effect of these events on existence of agency

Anne acted as Jingo's agent for maintaining Jingo's rare coin collection, including the sale and purchase of rare coins for many years. Anne developed a drug habit in the recent past. She then sold some of Jingo's coins and kept some of the money ..

  Compute the amount of taxes at natural gdp

Assume an economy with the following variables: YN = 25000; t = 20%; YA = 20,000; G = 6200; Ta = 400. Compute the amount of taxes at natural GDP

  Determine the distribution of scalar magnetic potential

The stator and rotor teeth arrangement of an electromechanical device is given in Figure P12.5. Determine the distribution of scalar magnetic potential between the stator and rotor teeth and inside the slots of the given system, using the FEM.

  What other factors besides dollars might influence

Web Exercise Home heating accounts for approximately one-third of energy consumption in a typical U.S. household.

  Why do national treasuries sell bonds

In 2010, financial markets were shaken with the prospect that Greece might default on its national debt, yet one often reads that nations are not at risk of defaulting on their debt because they can always "print" money. In what sense is this true? I..

  Determining the supply curve for rice

The supply curve for rice in Japan slopes upward, just like any normal supply curve. If Japan eliminated its trade barriers to rice.

  How to shape any of interests into a business opportunity

A huge number of successful businesses' such as Apple, The Cheesecake Factory, and E-Bay, were built around the personal passions of their founders. Consider your own personal passions. What do you love to do What are you great at doing

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