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

Anti-dilution protection, Suppose that EBV makes a $6m Series A investment ...

Suppose that EBV makes a $6m Series A investment in Newco for 1m shares at $6 per share. One year later, Newco has fallen on hard times, and receives a $6m Series B financing from

Illustration of development process affected on culture, Illustrate some ex...

Illustrate some example of the development process affected on culture. Examples of the development process affected on culture: • Foreign Direct investment (FDI) and IMF st

Business and economics, #discuss the theory of costs in relation to busines...

#discuss the theory of costs in relation to business operations.you should identify different types of costs and explain how the supply curve is constructed for an organisation?

Effectiveness of market approaches in promotion development, Analyse the ef...

Analyse the effectiveness of market approaches into promoting development. Assessing the effectiveness of some system, planned, market or mixed depends onto the choice of displ

Find the conversion order for investors, Consider the following four CP inv...

Consider the following four CP investors: Series A: $5m FV (and 2X liquidation preference) or converts to 5m shares; Series B: $10m FV or converts to 8m shares; Series C:

Firm, What is a firm

What is a firm

Linea programming, use of linear programming in decision making

use of linear programming in decision making

Demand supply, demand and supply curve for luxury goods

demand and supply curve for luxury goods

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