Demco Products, a company that manufactures stainless steel control valves, has a fund for equipment replacement that

Question:

Demco Products, a company that manufactures stainless steel control valves, has a fund for equipment replacement that contains $500,000. The company plans to spend $85,000 each year on new equipment.

(a) Estimate the number of years it will take to reduce the fund to no more than $85,000 at an interest rate of 10% per year.

(b) Use the NPER function to determine the exact number of years.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

See More Books

Question Posted: Dec 24, 2018 05:47 AM

See More Questions

Anthony Bennett is the manufacturing production supervisor for Green Bottle Works (GBW), a company that manufactures stainless-steel water bottles. Trying to explain why he did not get the year-end...
Each of the scenarios to follow describes a sustainability- related cost item for organizations. For each scenario, identify which function of the value chain that cost would represent (R& D, design,...
Each of the following scenarios describes a sustainability-related cost item for organizations. For each scenario, identify which function of the value chain that cost would represent (R&D, design,...
The following are the Year 9 income statements of Kent Corp. and Laurier Ltd. Additional Information ¢ Kent acquired its 40% interest in the common shares of Laurier in Year 3 at a cost of...
Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 20Y8, Fonda Motorcycle Shop incorrectly counted...
Evaluate the following integrals or state that they diverge. dx x(x + 1)
Describe multiple interfaces and explain why or when they are needed.
ANALYSIS OF ACTIVITY MEASURES Based on the financial statement data in Exercise 24-1A, compute the following activity measures for 20-2 (round all calculations to two decimal places): (a) Accounts...
Create a transition table for the following DFA: 1 90 0 91 1 0 92 1
Hotel Baroneii International is an international hospitality group that is present in more than 100 countries with 12 brands and 5000 plus properties. The group also has a strong loyalty membership...
Circle the appropriate response. 1. In the era of scientific management, organizational leaders were not as concerned about managerial ethics and social responsibility as they are today. 2....
A company that manufactures ultrasonic wind sensors invested $1.5 million 2 years ago to acquire part-ownership in an innovative chip making company. How long will it take from the date of their...
If you were the database administrator for the iTunes store, how might you use predictive analysis to determine which artists and movies will sell most next year?
Five years from now, would you choose different benefits from those you selected today? Why or why not?
If management treats employees well, pays them a fair wage, communicates with them, and ensures that they have a safe and healthy work environment, there is no need for a union. Do you agree or...
Given your career aspirations, might you join a union? Why or why not? Explain.
What changes do you think this might cause in the immediate task environment for a business operating within the financial service industry? Look at the Financial Times online for information.
What are the reasons for strategic planners to pay more attention to the importance of planning and implementing an effective pricing strategy in a competitive market?
HiTech Inc. has the following stockholders equity on June 30, 2019: Common Stock, $15 par (200,000 shares issued)............$3,000,000 Paid-in Capital in Excess of...
Wimot Trucking Corporation uses the units-of-production depreciation method because units-of-production best measures wear and tear on the trucks. Consider these facts about one Mack truck in the...
Johnson Thermal Products used austenitic nickel-chromium alloys to manufacture resistance heating wire. The company is considering a new annealing-drawing process to reduce costs. If the new process...
The costs associated with a small X-ray inspection system are $40,000 now and $24,000 per year, with a $6000 salvage value after 3 years. Determine the equivalent cost of the system if the real...
Maintenance costs for pollution control equipment on a pulverized coal cyclone furnace are expected to be $180,000 now and another $70,000 three years from now. The CFO of Monongahela Power wants to...
Milden Company is a merchandiser that plans to sell 4 1 , 0 0 0 units during the next quarter at a selling price of $ 5 9 per unit. The company also gathered the following cost estimates for the next...
How do organizational learning theories, such as the learning organization concept and knowledge management practices, contribute to sustained competitive advantage and organizational resilience in...
Harbert, Incorporated had a beginning balance of $12,000 in its Accounts Receivable account. The ending balance of Accounts Receivable was $10,500. During the period, Harbert collects $72,000 of its...

Demco Products, a company that manufactures stainless steel control valves, has a fund for equipment replacement that

Question:

Step by Step Answer:

a 500000 85000PA10n PA10n 58...View the full answer

Engineering Economy

Students also viewed these Business questions