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

Elasticity of demand, Explain the elasticity of price expectations?

Explain the elasticity of price expectations?

Price elasticity of demand, explain why each of the following factors influ...

explain why each of the following factors influence the own price elasticity of demand for a comodity 1. Consumer preferences 2. the narrowness of definiton of the commodity

T-value associated with 25 degrees of freedom, What is the t-value associat...

What is the t-value associated with 25 degrees of freedom and 20% in the tail? (Please round your answer to 3 decimal places)

What are the assumptions of lewis, What are the assumptions of Lewis? ...

What are the assumptions of Lewis? LDCs (Less Developed Countries) have two (dual) economies as: • Rural traditional economic and social practices, which overpopulated, s

Managerial economics, #question the importance of managerial economics..

#question the importance of managerial economics..

Hypothetical demand curve for hybrid vehicles, Equation (1) gives a hypothe...

Equation (1) gives a hypothetical demand curve for hybrid vehicles in the United States during the year 2000, where Q is the quantity demanded and P is the price.  Equation (2) giv

How can value management be utilized, How can value management be utilized ...

How can value management be utilized to compare various possible design solutions? When the bottom-level objectives for a project have been acknowledged through these technique

OLIGOPOLY, EXPLAIN WHY INTERDEPENDENCE IN OLIGOPOLY RESULTS IN A TENSION BE...

EXPLAIN WHY INTERDEPENDENCE IN OLIGOPOLY RESULTS IN A TENSION BETWEEN COOPERATION AND COMPETITION.

list the combinations of drinks and bar, You can buy as many drinks as you...

You can buy as many drinks as you want at $1 each. You can also buy as many chocolate bars as you want at $2 each. You have $5 to spend. You must buy whole bars and drinks, that is

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