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 the group mean, Below is a given Frequency Distribution Table which...

Below is a given Frequency Distribution Table which needs the Student's attention. Please complete the table as necessary to find the following information: a.        What is th

Expenditure, why do businesses have to sped money (expenditure)in order to ...

why do businesses have to sped money (expenditure)in order to succeed?

Internal audit, Explain the essential distinction among the stages of growt...

Explain the essential distinction among the stages of growth theory of development, the theory of international-dependence in both its neo-marxist and false paradigm conceptualizat

Firm commitment offering, An underwriter guarantees to increase a fixed amo...

An underwriter guarantees to increase a fixed amount of capital through an initial public offering (IPO).

Railways economics, AsEvaluate the implications of implementing this ideal ...

AsEvaluate the implications of implementing this ideal product mix in Transnet Freight Rail.

Socio economic problems, what are the major socio economic problems of Indi...

what are the major socio economic problems of India which hamper the growth and development

Traditional - modern sectors and rural-urban migration, What are the tradit...

What are the traditional, modern sectors and rural-urban migration? Rural-urban migration: Rural-urban migration is the movement of labour through the countryside to cities

Define the velocity of circulation of money, QUESTION (a) (i) Define th...

QUESTION (a) (i) Define the velocity of circulation of money. (ii) By comparing the Fischer's Quantity Theory of money and Keyne's Liquidity Preference Framework, explain cl

Explain the 3 different ways of calculating national income, QUESTION (...

QUESTION (a) Explain the 3 different ways of calculating national income. (b) Does the National Income figure accurately reflect the living standard of a population? Discuss

What is the effectiveness of non-government organisations, What is the effe...

What is the effectiveness of Non-Government Organisations, within the promotion of development? Critics argue NGOs (Non-Government Organisations): • Are self-serving and se

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