User Account

All Pages

Which of the given process is economically favored

Assignment Help Microeconomics
Reference no: EM13881995

Chem-Tex Chemical is considering two additives for improving the dry-weather stability of its lowcost acrylic paint. Additive A has a first cost of $110,000 and an annual operating cost of $60,000. Additive B has a first cost of $175,000 and an annual operating cost of $35,000. If the company uses a 3-year recovery period for paint products and a MARR of 20% per year, which process is economically favored? Use an incremental ROR analysis.

Reference no: EM13881995

Questions Cloud

Determine which nanoparticle type the company should select : Determine which nanoparticle type the company should select using the _i * value. Use the plot of PW versus _i values to select the better alternative with MARR _ 20% per year. Is the answer the same as in part a?
What is her nominal annual yield on this investment : A woman purchases a 10-year par bond with 8% semi-annual coupons. The bond is priced to yield 7.5% converted semi-annually. The coupons are reinvested in a fund paying 7.0% nominal, converted semi-annually. What is her nominal annual yield on this in..
Decide between two different conveyor belt systems : Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $244,000, has a four-year life, and requires $76,000 in pretax annual operating costs. Calculate the NPV for both conveyor belt sys..
Buying stock with market order : Buying Stock with a Market Order You would like to buy shares of Ralph Lauren (RL). The current bid and ask quotes are $85.18 and $85.30, respectively. You place a market buy-order for 500 shares that executes at these quoted prices. How much money d..
Which of the given process is economically favored : If the company uses a 3-year recovery period for paint products and a MARR of 20% per year, which process is economically favored?
The fixed asset falls into the three-year MACRS class : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.58 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2,040,000 in annual sale..
The hurdle rate for capital budgeting decisions : Using the company cost of capital to evaluate a project is: I) Always correct II) Always incorrect III) Correct for projects that are about as risky as the average of the firm's other assets. The hurdle rate for capital budgeting decisions is. Genera..
Calculate rate of return for txdot : Calculate the rate of return and determine which design is preferred if TxDOT uses a MARR of 6% per year and a 20-year project period.
Example of an anomaly to the efficient market hypothesis : Which of the following is not an example of an anomaly to the efficient market hypothesis?

Reviews

Write a Review

Microeconomics Questions & Answers

  What kinds of all-or-nothing thinking have you detected

1. Do you agree with the necessity for autonomy as defined by the cognitive theorists Why or why not 2. What kinds of all-or-nothing thinking have you detected in yourself? How will you stop it

  Purchases of goods declined as portion of overall output

During the 1990s government purchases of goods declined as portion of overall output, in part because of the end of the cold war. If we ignore trade and treat the U.S. as a closed economy, what would be the predicted long-run result of this shift on ..

  Cost of capital analysis

Describe the importance of cost of capital with respect to the actual financial problem of most manufacturing companies.

  How to calculate growth rates of velocity-money supply

If inflation and nominal interest rates are constant, at what rate, if any, will velocity grow Given a permanent (once and for all) rise in level of interest rates, how will it affect the level of velocity and the growth rate of velocity

  Assume there is in fact no seasonal pattern in sales and

cypress river landscape supply is a large wholesale supplier of landscaping materials in georgia. cypress rivers sales

  Using quantity theory of money and fisher relation what

suppose that in korea the velocity of money is constant real gdp grows by 6 per year each year the money stock grows by

  What would efficient revenue management imply

What would efficient revenue management imply for the pricing of the Cowboys Stadium parking lot on typical game days? How about for the Super Bowl? How about for the many smaller events that fill less than half the lot?

  Exlplain the rule of 70

Apply the rule of 70 to solve the following problem. Real GDP per person in Mexico in 2005 was about $12,000 per person, while it was about $48,000 per person in the United States

  Marginal and average cost curves

n a competitive market place (pure competition) is it possible to continually sell your product at a price above the average cost of production.

  Relationship between economies of scale and natural monopoly

What is the relationship between economies of scale and a natural monopoly? What is simultaneous consumption and how does it affect economies of scale? What are network effects and how do they contribute to economies of scale?

  What is the inflation rate in 2009

What is the inflation rate in 2009

  1 suppose that the market for bottled water is perfectly

1 suppose that the market for bottled water is perfectly competitive.a. draw the current equilibrium using graphs for

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