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

What is pure and impure market, Markets are often classified in terms of th...

Markets are often classified in terms of the nature of competition and collaboration they facilitate. In economic analysis, if the elements of competitions are “pure” then the mark

What are state approaches to developing, What are state approaches to devel...

What are state approaches to developing? The government supposes responsibility for economic planning to attain the best possible utilize of scarce resources. An economic plan

Procurement and supply., to explain in detail how to get five rights in pro...

to explain in detail how to get five rights in procurement and supply

What are the predictions of dependency theory, What are the predictions of ...

What are the predictions of dependency theory? The predictions of dependency theory: • DCs exploit LDCs (Less Developed Countries) by extracting their surplus value. Surplu

Briefly discuss the forms of legitimate governments, Question 1 Explain t...

Question 1 Explain the Orthodox and Liberal perspective of political theory Question 2 Critically analyse the institutional approach in comparative political analysis

EMPLOYMENT, VARIOUS DEFINITIONS OF UNEMPLOYMENT

VARIOUS DEFINITIONS OF UNEMPLOYMENT

Is structural change a problem, Is structural change a problem? Econom...

Is structural change a problem? Economies are dynamic and adapt to meet evolving consumer wants needs. This means resources are moved from use to use in response to, say, chan

What are the advantages of informal economy, What are the advantages of inf...

What are the advantages of informal economy? Advantages of the informal sector: • Employment, opportunities and income. • Offers cheap inputs for the formal sector •

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