Business, 15.04.2021 19:20 kolin89

Jupiter Inc. has decided to acquire a new weather satellite. After considering several options it has narrowed its search to two satellites. Satellite XPTO: purchase cost of $293,480 and operating costs of $28,869 per year (paid at the end of each year). Satellite XYZ: purchase cost of $185,844 and operating costs of $56,043 per year (paid at the end of each year). Both satellites have a service life of 11 years. Based on the defender-challenger approach and given that the MARR is 3%, reinvestment rate is 10%, and minimum external rate of return is 11%, compute the incremental external rate of return of choosing the most expensive satellite. Note: round your answer to two decimal places, and do not include spaces, percentage signs, plus or minus signs, nor commas. If your answer is 15%, write 15, not 0.15.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 17:10

Teller co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during may. each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. clay mix costs $0.40 per pound and employees of the company are paid $12.00 per hour. manufacturing overhead is applied at a rate of 110% of direct labor costs. teller has 3,900 pounds of clay mix in beginning inventory and wants to have 4,500 pounds in ending inventory. what is the total amount to be budgeted for manufacturing overhead for the month?

Answers: 1

Answer

Business, 21.06.2019 19:50

Which of the following best explains why treasury bonds have an effect on the size of the money supply? a. the amount of treasury bonds in circulation affects both unemployment and inflation. b. the government can spend more money and charge lower taxes by using treasury bonds. c. the federal reserve bank can buy and sell these bonds to raise or lower bank deposits. d. the interest paid on treasury bonds influences the interest rates charged by private banks. 2b2t

Answers: 1

Answer

Business, 22.06.2019 04:00

Which law would encourage more people to become homeowners but not encourage risky loans that could end in foreclosure? options: offering first time homebuyers tax-free accounts to save for down payments requiring all mortgages to be more affordable, interest-only loans outlawing home inspections and appraisals by mortgage companies limiting rent increases to less than 2% a year

Answers: 2

Answer

Business, 22.06.2019 10:00

Your uncle is considering investing in a new company that will produce high quality stereo speakers. the sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. what sales volume would be required to break even, i.e., to have ebit = zero?

Answers: 1

Answer

You know the right answer?

Jupiter Inc. has decided to acquire a new weather satellite. After considering several options it ha...

Questions