economics problem, Business Economics

Assignment Help:
The manager of a movie production company is thinking of investing in new graphics computers for a price of $325,000. The computers are expected to have a useful life of 3 years. The machine is expected to save the firm $200,000 in the first year, $180,000 in the second year, and $60,000 in the third year. At the end of 3 years, a junk dealer would be willing to purchase the machine for $20,000. Alternatively, the manager could skip the machine, and invest the $325,000 at a guaranteed interest rate of 5%. Which choice is more profitable for the manager, buying the computers or investing the money at 5%?

Related Discussions:- economics problem

Job Creation, How much power or influence does a U.S. President versus a CE...

How much power or influence does a U.S. President versus a CEO actually have when it comes to job creation or the choice to manufacture company goods in a foreign nation?

Double – dip recession, The word double-dip is a negative -situation .This ...

The word double-dip is a negative -situation .This scenario has economically shall move back and switch in to a deeper and longer worse situation. A double dip recession states to

Discuss the various ehr strategies for attracting talents, QUESTION Org...

QUESTION Organisations have long been concerned with attracting and retaining talented employees. The primary reason is that they depend on the skills and talent of their workf

What do you mean by standard of living, What do you mean by standard of liv...

What do you mean by standard of living? Standard of living (SoL): It is incomer per capita (head) and it is determined by national income (GDP) divided through total pop

PROCESS CHART, INVESTIGATE AND FIND SOLUTION TO HOUSEKEEPING SAFETY PROCESS...

INVESTIGATE AND FIND SOLUTION TO HOUSEKEEPING SAFETY PROCESS WITH LAYOUT IN PLANT, WHAT PROCESS CHARTS WILL NEED TO SOLVE THIS PROBLEM

How is effort monitored onto a project, How is effort monitored onto a proj...

How is effort monitored onto a project? It is significant that the effort to be spent onto activities is reassessed on a regular basis – why is it so very important? Effort is

What is the development gap, What is the development gap? The developme...

What is the development gap? The development gap refers to the divergence between standards of living in the developed and developing world. As like Source World Bank:

What is meant by the factor endowment theory, Question 1: a) Explain, ...

Question 1: a) Explain, with the use of examples, what is meant by the ‘Factor Endowment Theory'. b) According to you, can the ‘Factor Endowment Theory' be a reasonable e

Firm, What is a firm

What is a firm

Write Your Message!

Captcha
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