It is estimated that the annual heat loss in a small, Ask an Expert

Economics

It is estimated that the annual heat loss in a small factory is $12,000. Proposal 1 will reduce the heat loss by 68% and will cost $3,500. Proposal 2 will reduce the heat loss by 46% and will cost $2,200. For an interest rate of 12% and a lifetime of 10 years, which proposal should be selected?

Calculate your answer in three ways:

a. Using present worth on incremental investment

b. Using annual equivalent on incremental investment

c. Using IRR on incremental investment

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9743081

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question again our seller starts with demand q 12 - p and

Question: Again our seller starts with demand Q = 12 - P and marginal production costs of $4 per unit. The seller's transaction cost is $1 per unit, and buyers' are $2 per unit. a. Show that profit-maximizing output is 2 ...

Question suppose you are the manager of a chain of computer

Question: Suppose you are the manager of a chain of computer stores. For obvious reasons you have been closely following developments in the computer industry, you have just learned that the government has passed a two-p ...

Question develop an essay discussing the fiscal and the

Question: Develop an essay discussing the fiscal and the monetary policies adopted and implemented by the federal during the Great Recession and their impacts on the U.S. economy. APA format 700 - 850 word essay Your pap ...

Question 1 suggest two regulations that the reserve bank of

Question: 1. Suggest two regulations that the Reserve Bank of New Zealand could introduce to reduce the risk of asset price bubbles in the future. 2. Write a note on the prospects for economic growth in New Zealand for t ...

Question what works for kids to get rid of worries and

Question: What works for kids to get rid of worries and anxiety while playing sports? How might one's feelings about one's self influence this? The response must be typed, single spaced, must be in times new roman font ( ...

Question you borrowed 100000 with an interest rate of 12 to

Question: You borrowed $100,000 with an interest rate of 12% to be paid back with 10 equal end-ofyear payments. How much is your outstanding debt after 5 payments? The response must be typed, single spaced, must be in ti ...

Question from earlier chapters you will recall that

Question: From earlier chapters you will recall that technological change shifts the average cost curves. Draw a graph showing how technological change could influence intra-industry trade. The response must be typed, si ...

Question read the article the truth about mystery shopping

Question: Read the article, The truth about mystery shopping. At the end of the article click on How to conduct a proper mystery shop and read it as well. Then post your answer to the question: Mystery shoppers, do they ...

Question greg wants you to purchase corporate bond issued

Question: Greg wants you to purchase corporate bond issued by ACDP Manufacturing. It is a 25,000 bond with a bond rate of 8% payable quarterly, and it matures 10 years from today. Bob wishes to ear 10%(nominal,annual) on ...

Question for the healthcare industry submit analysis of

Question: For the healthcare Industry: Submit analysis of current forces affecting the auto industry and begin competitve structure and resources). 1. Include charts/graphs and tables indicating trends 2. Describe indust ...

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

Recent Questions

Ask Microeconomics Expert