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

Define methods utilized to exercise quality control, Define three methods t...

Define three methods than could be utilized to exercise quality control and describe the advantages and disadvantages of all. Methods comprise: • Self-checking:   Rapid, ch

Explain why all firms aim at growing big in size, QUESTION a) Different...

QUESTION a) Differentiate between price, income and cross elasticity's of demand. b) How can the concept of price elasticity be useful to the owner of a supermarket who want

Elasticity, elasticity concept occupies a central place in policy formulati...

elasticity concept occupies a central place in policy formulation. Explain in details.

Greatest minimum efficient scale, The values for the long-run ATC curves of...

The values for the long-run ATC curves of three different firms are listed in the table below: Quantity ATC 1 ATC 2 ATC 3

Assignment, law of variable propotions

law of variable propotions

Critically analyse the drivers of globalisation, Problem 1: (a) Disting...

Problem 1: (a) Distinguish between the two broad aspects of globalization. (b) Critically analyse the drivers of globalisation. (c) Discuss, with examples, on the advanta

What is social inclusion, What is social inclusion? Social Inclusion:...

What is social inclusion? Social Inclusion: Social inclusion implies the whole of society enjoys the advantages of economic activity (as income) and have complete access

Actively-managed mutual funds, A sample of 58 mutual funds was taken and th...

A sample of 58 mutual funds was taken and the mean return in the sample was 14% with a standard deviation of 9.3%. The return on a particular index of stocks (against which the mut

Foreign exchange market, Consider the following information in the internat...

Consider the following information in the international money markets:             Spot rate                       :           $0.95:€             Forward rate (one year)  :

Intro to business, Marketing is impacted by influences outside the business...

Marketing is impacted by influences outside the business control that constrain the organizations ability to manipulate its marketing mix. These environmental included (a) competi

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