What present expenditure for the auxiliary equipment

Assignment Help Business Economics

Reference no: EM13151137

A heating system costs $2,000 for installation and has an estimated life of 10 years. By the addition of a specialized energy -saving auxiliary equipment, an annual savings of $200 in operation expense can be realized, and the estimated life of the heating system can be doubled to 20 years. The salvage value of either alternative is negligible at any time. If MARR is 10% per year, what present expenditure for the auxiliary equipment can plan you justify spending? Assume that you need the heating system infinitely.

Reference no: EM13151137

Questions Cloud

What are the optimal units of labor : Suppose that in the short run k=100. Moreover, wage of labor is w=5 and price of the product is p=10. What are the optimal units of labor?

Infinitely repeated cournot duopoly : Infinitely Repeated Cournot Duopoly: Alice and Bob each operate each operate a firm in a quantity setting (Cournot) duopoly game. Let the cost of a unit for Alice and Bob be 6

Journal entry to accrue the monthly sales salaries : Prepare the general journal entry to accrue the monthly sales salaries expense at January 31. The employer payroll taxes for Metro Express include FICA taxes, federal unemployment taxes of 0.8% of the first $7,000 paid each employee, and state unem..

Expense for carolina mills during the year : Carolina Mills purchased $270,000 in supplies this year. The supplies account increased by $10,000 during the year to an ending balance of $66,000. What was supplies expense for Carolina Mills during the year?

What present expenditure for the auxiliary equipment : The salvage value of either alternative is negligible at any time. If MARR is 10% per year, what present expenditure for the auxiliary equipment can plan you justify spending? Assume that you need the heating system infinitely.

Calculate delta g for this reaction : At 1500 degrees C the equilibrium constant for the reaction CO(g)+2H2(g) -->

If amazon.com''s revenue increased after : If amazon.com's revenue increased after it cut the price of books, dvds, and blu-rays what must be true about the price elasticity of demand for ordering these goods online?

What proportion of progeny will be mutant males : if a male bird that is heterozygous for a recessive Z-linked mutation is crossed to a wild type female, what proportion of the progeny will be mutant males?

Cost of merchandise sold for the year : A company, using the periodic inventory system, has merchandise inventory costing $175 on hand at the beginning of the period. During the period, merchandise costing $635 is purchased. At year-end, merchandise inventory costing $160 is on hand. Th..

User Account

All Pages