Which company you should buy the widget machine

Assignment Help Econometrics
Reference no: EM13213923

QZY, Inc. is evaluating new widget machinesoffered by three companies. The machines have the following characteristics:

A B C

First cost $15,000 $25,000 $20,000

Maintenance and operating 1,600 400 900

Annual benefit 8,000 13,000 9,000

Salvage Value 3,000 6,000 4,500

Useful life in years 4 4 4

a) Construct a choice table for interest rates from 0% to100%

b) MARR = 15% From which company, if any should you buy the widget machine? Use rate of return analisys.

Use excel to graph the NPW as a function of interest rate for all alternatives. Also a choice table for interest rates from 0% to 100%. Finally, which alternative should be chosen if MARR=15%?

Reference no: EM13213923

Questions Cloud

Major perspectives in the field of psychology : Identify the five major perspectives in the field of psychology and list one subfield for each.
Explain what must be the initial concentration of reaction : What must be the initial concentration of reaction, [A]0, if (a) the zero- and first-order; (b) the zero- and second-order; (c) the first- and second-order reactions are to have the same half-life?
Elements of the criminal justice system : List, compare and contrast the 3 elements of the criminal justice system. How do these elements function to create our modern day Criminal Justice System?
Where should the manufacturing plant be located : A firm is considering moving its manufacturing plant from Chicago to a new location. The industrial engineering department was asked to identify the various alternatives together with the costs to relocate the plant, and the benefits.
Which company you should buy the widget machine : Use excel to graph the NPW as a function of interest rate for all alternatives. Also a choice table for interest rates from 0% to 100%. Finally, which alternative should be chosen if MARR=15% QZY, Inc. is evaluating new widget machinesoffered by th..
Security operations integrated : Read the section on the Walt Disney Corporation’s security operations in Orlando on pp. 206–209 of the text. How are the Walt Disney Corporation’s security operations integrated into the overall business operations?
Explain how much water would have consumed : how much water would they have consumed? How many kJ would be required to bring it to body temperature? (We noted in class that the amount of heat necessary to melt snow is 6.01 kJ/mol)
Opinion on the community era of policing : What is your overall opinion on the community era of policing as opposed to past eras and their role in society? What aspects of the previous eras would be beneficial today?
Irish and german immigrants of the early nineteenth century : Compare and Contrast the Irish and German immigrants of the early nineteenth century America in terms of their motives for leaving Europe, pattern of settlement in the United State, impact on American life, and reception by native-born Americans.

Reviews

Write a Review

Econometrics Questions & Answers

  Design a simple econometric research project

Design a simple econometric research project

  Multiplicative decomposition method

Multiplicative decomposition method

  Market for cigarettes

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

  Solve the forecast model

Solve the forecast model

  What are the marginal abatement cost functions

What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).

  Write the t statistic for testing the null hypothesis

Explain why this model violates the assumption of no perfect collinearity.  Write the t statistic for testing the null hypothesis

  What is economics system

What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type

  Multiple choice questions related to market concentration

Determine when a competitively produced product generates negative externalities in production, the industry will,

  Calculating number of units produced by firm

Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.

  Question about mobile commerce

M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.

  Calculating the average days past due and average flow time

Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:

  Mechanism of an english auction and second price auction

Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.

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