engineering economics, Business Economics

Assignment Help:
2. You recommend spending $10,000 on equipment that will increase sales of your product by $1000 a year and reduce annual operating costs by $800. The equipment has 10-year lifetime, but can be depreciated in three years according to MACRS. Your company uses a 10% interest rate and is the 25% tax bracket.
a. What is the pretax present value of this investment?
b. What is the after-tax present value of this investment?

Related Discussions:- engineering economics

Use of risk management techniques significant in is projects, Why is the us...

Why is the use of risk management techniques becoming increasingly significant in IS projects? IS projects: It is like projects in many other disciplines, are becoming i

Capital income and capital expenditure, Task 1 Your line manager has as...

Task 1 Your line manager has asked you what you think the accounting department's role is in relation to the organisation. In your group, discuss the main purpose of accounti

Explain the different types of unemployment that exist, QUESTION (a) "T...

QUESTION (a) "There is always an inverse relationship between price and quantity demanded of a good." Discuss. (b) Explain with appropriate diagram(s) the different factors

What is the function of a quality plan, What is the function of a Quality P...

What is the function of a Quality Plan? Who must create it? The Quality Plan effectively defines how the work is to be executed and this is complementary to the Project Plan th

Monopoly pricing, 1. (classical monopoly pricing) A monopolist faces a dema...

1. (classical monopoly pricing) A monopolist faces a demand curve q (p) = 100   p: (a) If its cost function is C (q) = 2q; what is the optimal level of price and quantity? (b

Utility theories, critically evaluate the two main utility theories

critically evaluate the two main utility theories

Mark-up pricing policy, Problem 1 Describe the methods of environmental...

Problem 1 Describe the methods of environmental analysis-SWOT, PEST. Strength, Weakness, Opportunity, Threat Political, Economic, Social, Technological Environment

Case Study, Harvard Business Review Case Study 9-572-029 Fisher Price Toys....

Harvard Business Review Case Study 9-572-029 Fisher Price Toys... Need help with the following questions: 1. Should Fisher Toys lauch the ATV Explorer? 2. What price tag should the

Describe the terms inflation-deflation and inflation rate, Describe the ter...

Describe the terms inflation, deflation, and inflation rate and price stability. Inflation and Deflation: a. An increasing aggregate price level is called as inflation.

What is meant by the term value tree, What is meant by the term value tree?...

What is meant by the term value tree? Value Tree: A value tree gradually decomposes the overall objectives of a project within more exact objectives which can be agreed through

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