What is the nominal annual rate of return

Assignment Help Business Economics
Reference no: EM131809338

A cannery is considering installing an automatic case-sealing machine to replace current hand methods. If they purchase the machine for $3800 in June, at the beginning of the canning season, they will save $400 per month for the 4 months each year that the plant is in operation. Maintenance costs of the case-sealing machine are expected to be negligible. The case-sealing machine is expected to be useful for five annual canning seasons and then will have no salvage value. What is the payback period? What is the nominal annual rate of return?

Reference no: EM131809338

Questions Cloud

Prepare the journal entries to record the expenditure : Prepare the journal entries to record the $68000 expenditure, and the first year amortization using an 8 years life
Use the modified benefit-cost ratio : (a) Use the benefit-cost ratio. (b) Use the modified benefit-cost ratio. (c) Use the public/government version of the B/C ratio.
Prepare journal entryies for any impairment loss occurring : Crossbow Ltd is an entity that specialises in the manufacture of leather. Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015.
What is the payback period of able plastics : The equipment, although useless to Able, would be serviceable for about 15 years. What is the payback period? Should Able Plastics buy the removal equipment?
What is the nominal annual rate of return : What is the payback period? What is the nominal annual rate of return?
Discuss the problems with the early research done by bsf ltd : Discuss the nature and value to society of the research being done by BSF Ltd. Discuss the problems with the early the research done by BSF Ltd.
Examine the determinants of health for one of these issues : Obacco use, obesity, and physical inactivity are among the leading contributors to morbidity and mortality in the United States .
What is the payback period : Any time he would decide to switch to some other computer system he could cancel the software lease and sell the computer for $500.
What are the pros and cons of such a policy : Do you think GAAS would be better if they were more specific. Why or why not. What are the pros and cons of such a policy

Reviews

Write a Review

Business Economics Questions & Answers

  Derive the model specification that can be estimated by ols

ECO 63B Assignment. Consider the following Cobb Douglas production function where Y is maize output, X1 is labour input, and X2 is the capital. Derive the model specification that can be estimated by using the ordinary least squares (OLS) technique

  Institute jubail technical institute

Please let us access free resources to try at our institute Jubail Technical Institute (www.jti.edu.sa). If it is approved by higher managment later, we can have deal or an agreement with you for further course of action.

  Tiebout model of local public good provision

Explain why, in the Tiebout model of local public good provision, efficiency will not be achieved if there are externalities across city borders from the public

  Order of preference using economics

A hospital in a town has one dialysis machine that can run for 30 hours per week. As the boss of the hospital, you must decide who gets the treatment. how you will allocate the 30 hours, in order of preference using economics?

  Does defense spending include transfer payments

Does Defense Spending include transfer payments? Does Welfare (TANF) include transfer payments? Does Interest payments on government debt include transfer payments? Does social security include transfer payments?

  Produce a competitive product

If ABC adds an assembly line for the product and XYZ does not follow with a competitive product.

  What are the fiscal policy instruments

What are the fiscal policy instruments? What are the fiscal policy types? Currently the economy is facing an inflationary gap and the government is extremelyconcerned with the rapidly raising prices.

  Differences between unemployment and underemployment

Discuss the differences between unemployment and underemployment and give examples of each. Which do you think is a more serious “problem” for the economy? How might underemployment be addressed through government policy?

  Example of how the principle of opportunity cost applies

Give an example of how the Principle of Opportunity Cost applies to your life. Think of a recent decision you made. It could be a decision as simple as whether to eat out or cook your own dinner, or it could be a decision to quit your job and go back..

  Marginal cost curve above the average variable cost curve

A firm’s marginal cost curve above the average variable cost curve is equal to the firm’s individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price eq..

  Calculate the gdp of autoland using the final goods approach

An automobile factory sold $10,000,000 in automobiles to final consumers. Given these events, calculate the GDP of Autoland using a. the final goods approach. b. the value-added approach.

  Investment-government expenditures and net exports

Category Amount:: Durable Goods $1,000, Non-Durable Goods 2,500, Services 7,000,Fixed Investment 1,800, Changes to Business Inventory 35, Investment in Stocks & Bonds 5,500, Federal Government Purchases 1,200, Imports into the United States 2,600 Usi..

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