What is the uniform annual equivalent value of labor cost

Assignment Help Business Economics

Reference no: EM131092749

An electronic device is available that will reduce this year's labor cost by $10,000. The equipment is expected to last for 8 years. If labor costs increase at an average rate of 7% per year and the interest rate is 12% per year:

a. What is the maximum amount that we could justify spending for the device?

b. What is the uniform annual equivalent value (A) of labor costs over the eight-year period?

Reference no: EM131092749

Questions Cloud

Cutting back government spending : As to how the federal deficit would be cut back, the economists rule out tax increases. Instead, the cuts must come on the expenditure side with the average growth of federal expenditures - including interest payments on the national debt - kept b..

How much of the tax burden does each bear : Using a demand function of P = 7 – 2Q and a supply function of P = 4 + Q, and when adding an unit excise tax of $1.50, determine the following: Who really bears the burden of this tax? I. Consumers II. Producers or III. Both. How much of the tax burd..

Compare confederate and union strategies during the war : Compare and contrast Confederate and Union strategies during the war. What did each hope to achieve militarily and how did each hope to achieve it?

The firm has no ability to influence the market price : For a small firm in an extremely competitive industry, marginal revenue is always equal to price because: each firm has large fixed costs. if consumers increase their demand for the product, producer surplus falls. each firm has large economies of sc..

What is the uniform annual equivalent value of labor cost : An electronic device is available that will reduce this year's labor cost by $10,000. The equipment is expected to last for 8 years. If labor costs increase at an average rate of 7% per year and the interest rate is 12% per year: What is the maximum ..

What were the most difficult concepts to embrace : What were the most difficult concepts to embrace? What were the easiest? and How might this guide influence the writing of your own historical research findings?

Explain what made the presentation so good : When have you encountered a salesperson who made what you considered to be an excellent presentation? Explain what made the presentation so good?

Which of these two cure cycles is expected to produce better : Show transcribed image text The following figure show two cure cycles and the corresponding viscosity-time curves for an epoxy-based prepreg. Which of these two cure cycles is expected to produce better and more uniform mechanical properties, and ..

Units of labor to produce either a computer : The small country has 70 units of labor and needs 2 units of labor to produce a computer but only l unit of labor to produce a unit of cloth. The large country has 90 units of labor and only needs 1 units of labor to produce either a computer or a..

User Account

All Pages