User Account

All Pages

What is the rate of return of the acquisition

Assignment Help Business Economics
Reference no: EM132023814

The XYZ Company is contemplating the purchase of a new milling machine. The purchase price of the new machine is $60 000 and its annual operating cost is $2 675.40. The machine has a life of 7 years, and it is expected to generate $15 000 in revenues in each year of its life. MARR is set at 20%.

a. What is the Rate of Return of the acquisition?

b. How much is the cash flow excess?

c. The NPV of the investment is.

d. Payback Period is.

Reference no: EM132023814

Questions Cloud

Describe the nominal group technique : Define and briefly discuss the following brainstorming techniques, the delphi technique, brainstorming, or nominal group technique.
Monetary base resulting from the budget deficit : If, in a particular year, the government ran a budget deficit of $200 billion and the private sector's holdings of government securities increased
What steps might you take to gain the cooperation : Hypothetically speaking, you are assigned to a committee of three to decide on a dress code for specific University Staff and Faculty.
What is jane break even point : What is Jane’s Break Even point? Show the contingency graph and label each point.
What is the rate of return of the acquisition : The machine has a life of 7 years, and it is expected to generate $15 000 in revenues in each year of its life. MARR is set at 20%.
What functions does opentext provide : What functions does OpenText provide that can augment and assist customer relationship management (CRM) systems?
What will be its selling price in two years : What will be its selling price in two years if comparable market interest rates drop 0.9 percentage points?
What are three interesting facts for the microbe : Select one microbe, can be infectious. What are three interesting facts for the microbe? Is it infectious?
Describe what you did in given : The parts that need to be changed in main are between the comment lines Your part starts here and Your part ends here. You should also add more lines.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd