A new machine requires an investment of 500,000 and will generate profits of 100,000 for ten years.
Question:
A new machine requires an investment of €500,000 and will generate profits of €100,000 for ten years. Will the investment have a positive net present value assuming that a realistic interest is 6 per cent?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 0% (3 reviews)
Yes the investment will have a positive net present value NPV assuming that a realistic interest ...View the full answer
Answered By
William Otieno
I am a professional tutor and a writer with excellent skills that are important in serving the bloggers and other specialties that requires a great writer. The important aspects of being the best are that I have served so many clients with excellence
With excellent skills, I have acquired very many recommendations which have made it possible for me to survive as an excellent and cherished writer. Being an excellent content writer am also a reputable IT writer with essential skills that can make one turn papers into excellent result.
4.70+
83+ Reviews
354+ Question Solved
Related Book For
Operations Management
ISBN: 9780273708476
5th Edition
Authors: Nigel Slack, Stuart Chambers, Robert Johnston
Question Posted:
Students also viewed these Business questions
-
Key West Electronics, located in Miami, was just ten years old in early 2010, with sales expected to pass the $500 million and net income just beginning to turn positive after years of losses or near...
-
In a financial mathematics, investors use utility functions to compare the "joy" of earning money on an investment to the "pain" of losing money on the same investment. Suppose that an investor using...
-
The management of Saturn Networks Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows: The radio station requires an investment of...
-
The North American and European continents are moving apart at a rate of about 3 cm/y. At this rate how long will it take them to drift 500 km farther apart than they are at present?
-
Prepare an entity relationship diagram, in good form, for the expenditure cycle, which consists of both purchasing and cash disbursements. Describe the represented by the cardinalities is the...
-
Use the housing price data in HPRICE1.RAW for this exercise. (i) Estimate the model log(price) = (0 + (1 log(lotsize) + (2 log(sqrft) + (3 bdrms + u and report the result in the usual OLS format....
-
Visit www.pearsonglobaleditions.com/malhotra to read the video case and view the accompanying video. Marriott: Marketing Research Leads to Expanded Offerings highlights Marriott's discovery from...
-
1. Companies are developing ethical policies and guidelines for legal reasons, but also to clarify what is acceptable and what is not. Do you think any of the issues raised in the case required...
-
You are invited to a weekend carnival and behind your food truck is a large tree. The tree is down an embankment 100m away. You take measurement and want to know the height of the tree. Use the...
-
Step 1 Make a list of all the jobs you have to do in the next week. Include in this list jobs relating to your work and/or study, jobs relating to your domestic life, in fact all the things you have...
-
Visit a dance club, bar or pub that has live music or any other similar entertainment venue. (a) How would you manage the environment to ensure the wellbeing and safety of staff? (b) How would you...
-
Your little brother is outside squirting a basketball with the stream of water from a garden hose. As the ball rolls across the yard, you begin to wonder what you would need to know in order to...
-
A heavy rope is hanging by one end from the ceiling with a block hanging from the other end. Is the speed of a pulse in the rope greater at the top or the bottom of the rope?
-
Would water waves traveling along a trough on the surface of Mars travel faster than, slower than, or at the same speed as water waves traveling along a similar trough on the surface of Earth?
-
Water parks often have a pool with a wave-making machine at one end, consisting of a piston that pushes water back and forth. There are some places in the pool where the waves make inner-tube riders...
-
Your friend wants to test your understanding of waves. She weaves together one end of two different ropes (one with greater mass density than the other, but each with the same radius and length) to...
-
You are watching a ship being loaded with large crates. The ship is held in place by several long steel cables attached to the dock. At one point, a crate bumps one of the cables and sends a wave...
-
In Mordica Company, total materials costs are $33,000, and total conversion costs are $54,000. Equivalent units of production are materials 10,000 and conversion costs 12,000. Compute the unit costs...
-
Consider the combustion of methanol below. If 64 grams of methanol reacts with 160 grams of oxygen, what is the CHANGE in volume at STP. 2CH3OH(g) + 3O2(g) 2CO2(g) + 4H2O(1) The volume decreases by...
-
The 21,000-seat Air East Arena houses the local professional ice hockey, basketball, indoor soccer, and arena football teams as well as various trade shows, wrestling and boxing matches, tractor...
-
Determine the optimal order quantity and total annual inventory cost for cups in Problem 13-27 if the carrying cost is 5% of the price of a box of cups.
-
Determine the optimal order quantity and total annual inventory cost for cups in Problem 13-27 if the carrying cost is 5% of the price of a box of cups.
-
Question 2 Price indexes indicate what is happening to the general level of prices. The most widely used and simplest is the Consumer Price Index. Define "Consumer Price Index" and explain why it is...
-
How is the economy affecting the fitness industry? Do you think it has become harder to recruit and retain members? What can the industry do to off-set the affects during tough financial times?
-
Explain the reason why some Australian company may need to expand in a size in order to be successful in international competition using relavant economic principle and cost concepts. explain in 80...
Study smarter with the SolutionInn App