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

How does foreign direct investment help development, How does foreign direc...

How does foreign direct investment (FDI) help development? Foreign direct investment (FDI) shows an injection of resources in the economy. When those resources are used to rai

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

Supply, causes of exceptional supply curve

causes of exceptional supply curve

Economics, MBA Economics Assignment Question 1: Many analysts in both deve...

MBA Economics Assignment Question 1: Many analysts in both developed and developing worlds have heavily criticized the cases of monopolies. Discuss using relevant examples whether

Economic dynamic integral, MC=25+30Q-9Q^2 fixed cost=55 find total cost av...

MC=25+30Q-9Q^2 fixed cost=55 find total cost avarage cost variable cost

Stocks rate of return, Question 1: (a) There are few, if any, real com...

Question 1: (a) There are few, if any, real companies with negative betas. But suppose you found one with β= -0.25. How would you expect this stock's rate of return to chang

Utility theories, critically evaluate the two main utility theories

critically evaluate the two main utility theories

Economic theories applied in business economics, Explain how the economic t...

Explain how the economic theories applied in business economics

How micro or microfinance credit assists in financial market, How is Micro ...

How is Micro or Microfinance credit assists in financial markets? Micro or Microfinance credit assists: • Grow businesses and raise the income of the poor • Extra income

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