What is the smallest value of n

Assignment Help Engineering Mathematics
Reference no: EM131507285

Question: Extended Learning Exercise The additional investment in a new computer system is a certain $300,000. It is likely to save an average of $100,000 per year compared to the old, outdated system. Because of uncertainty, this estimate is expected to be normally distributed, with a standard deviation of $7,000. The market value of the system at any time is its scrap value, which is $20,000 with a standard deviation of $3,000. MARR on such investments is 15% per year. What is the smallest value of N (the life of the system) that can exist such that the probability of getting a 15% internal rate of return or greater is 0.90? Ignore the effects of income taxes. Also note that market value is independent of N. (Hint: Start with N = 4 years.)

Reference no: EM131507285

Questions Cloud

Build cash flow based model : Build a Cash Flow based model. Comment whether the project should be undertaken or not using NPV, IRR and Payback tools.
Does the drug free workplace act apply here : Does the Drug Free Workplace Act apply here? Can the employee file a lawsuit under the Civil Rights Act, Title VII (1964)? Why or why not?
How does motors and mores employee compensation compare : . How does Motors and More's employee compensation compare relative to other organizations in the area?
Quantity of wheat demanded and supplied : The data in the following table represents Canadian wheat market where, Qd and Qs are the quantity of wheat demanded and supplied in bushels per week.
What is the smallest value of n : Extended Learning Exercise The additional investment in a new computer system is a certain $300,000. It is likely to save an average of $100,000.
Discuss the roots of organizational culture : Define organizational culture. Discuss the roots of organizational culture. Discuss the role organizational culture plays during times of change.
What is the total percentage return for an investor : What is the total percentage return for an investor who purchased a stock for $5.22, received $1.42 in dividend payments, and sold the stock for $10.01?
What is the required rate of return and dividend yield : What is the required rate of return, dividend yield, and capital gains yield on Janco’s stock?
Determining the principal and earnings : The principal and earnings in that account are returned to me in annual installments when I retire."

Reviews

Write a Review

Engineering Mathematics Questions & Answers

  Determine the number of sylow p-subgroups

Let G denote the general linear group GL2(Fp) of invertible 2 × 2 matrices with entries in the field Fp of integers modulo a prime p. Find a Sylow p-subgroup of G, and determine the number of Sylow p-subgroups

  Derive the error-correction form

Derive the error-correction form in Equation (5.68) for a VAR(p) model.

  What is the pert time briefly explain

Draw a network for this project and determine the critical path based on the most likely times by inspection.

  Clocks sell for euro45 radios for euro60 and toasters for

a company produces three electrical products-clocks radios and toasters. these products have the following resource

  What is the bv at the end of year two

A concrete and rock crusher for demolition work has been purchased for $60,000, and it has an estimated SV of $10,000 at the end of its five-year life.

  Draw the network representation

(a) Formulate this problem as a transportation problem by constructing the appropriate parameter table. (b) Draw the network representation of this problem. (c) Obtain an optimal solution.

  Explain the conjunctive normal form

Lipton's solution to the generalized SAT problem assumes that the problem is represented in the restricted form: C1 ? C2 ? ... ? Cm, known as the conjunctive.

  Explaining the sensitivity information

Develop and solve a linear optimization model to determine the optimal mix to maximize profit and write a short memo to the president Kathy Chung explaining the sensitivity information in language that she can understand.

  Pitot-static arrangement to estimate

For the 20°C water flow of Fig, use the pitot-static arrangement to estimate (a) the centerline velocity and (b) the volume flow in the 5-indiameter smooth pipe. (c) What error in flow rate is caused by neglecting the 1-ft elevation difference?

  Determine the associated number of electrons

The destructive breakdown of silicon dioxide occurs with an electric field of about 10 million V/cm. Consider an integrated MOSFET with a 4.5-nm thick oxide.

  Define the inferential statistical methods

lnvestigate the term "Six Sigma." Write a paper which outlines the method and its significance to quality control. Interview an engineer who has earned.

  Model of lineal programming

The company wishes to determine the amount of pounds that need to prepare of each one of the three mixtures to maximize its gain, under the assumption that he could sell the totality of each prepared mixture. Formulates the model of lineal program..

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