Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

John Livingston is looking into the possibility of buying several coin-operated vending machines and placing them in the local hospitals. Each machine costs $2000, which he will depreciate on a straight-line basis over 8 years. The machine will dispense Coke cans at 75 cents each and Coca Cola Company will replenish them at 40 cents each. Each machine is expected to sell 1500 cans a month. The hospitals will provide the space and electricity for the machines for $200 a month at the end of every month. The tax rate of John Livingston is 25% and the after tax cost of capital 12%. Assume that the income and bills occur at the end of each month, but the taxes are paid annually. Should John Livingston get into this venture?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M969913

Have any Question?


Related Questions in Microeconomics

Question draft a one-page spreadsheet showing financial

Question: Draft a one-page spreadsheet showing financial history and projected performance for the company: 'Nordstrom'. The rows should include revenue, expenses, calculated profit, and calculated profit margin. The col ...

Discussion customs brokerswhy should individuals and firms

Discussion: Customs Brokers Why should individuals and firms use customs brokers when importing and exporting? What are the benefits? Your post must be at least 300 words, formatted and cited in proper APA style with sup ...

Question identify at least two effective marketing

Question: Identify at least two effective marketing strategies for helping companies avoid "marketing blunders" for their products or services in foreign countries. Outline the pros (advantages) and cons (disadvantages) ...

Question an information technology it consulting firm

Question: An information technology (IT) consulting firm specializing in healthcare solutions wants to study communication deficiencies in the health care industry. A random sample of 70 health care clinicians reveals a ...

Question the ilos global wage report states that in the

Question: The ILO's Global Wage Report states that "in the wake of the financial crisis of 2008-09, global real wage growth started to recover in 2010, but has decelerated since 2012, falling from 2.5 per cent to 1.7 per ...

Question one consequence of increases in business

Question: One consequence of increases in business litigation over the past 20 years has been an increase in the percentage of lawyers who work as employees of firms rather than as independent practitioners. Explain why ...

Question youve invested 10000 in a portable bratwurst stand

Question: You've invested $10,000 in a portable bratwurst stand, giving up the 8% rate of return you could have earned had you invested that money elsewhere. Last year you sold 1600 brats at $3 each; the meat, buns, and ...

Question every year you deposit exist7200 into an account

Question: Every year you deposit exist7,200 into an account that earns 4.5% interest per year. What will be the balance of your account immediately after the 14th deposit? (Enter your answer as a number without the dolla ...

Question from mid-1996 to mid-1999 the personal saving rate

Question: From mid-1996 to mid-1999, the personal saving rate fell from 5% to 3%. What were the principal factors that caused this decline? The response must be typed, single spaced, must be in times new roman font (size ...

Question in the movie the day of the jackal the 1973

Question: In the movie "The Day of the Jackal" (the 1973 version, not the remake with Bruce Willis), an assassin who was looking to perform a killing that also would signal his "retirement" as a contract killer hires som ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As