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What happens to the cost of PRC goods in European countries when the dollar is strong (still 8.28 yuan per dollar)? What happens when the dollar weakens?
Based on this information, perform an actual-dollar ATCF analysis. Is this investment acceptable based on economic factors alone?
What is the PW of costs of this system after income taxes have been taken into account? Develop the real-dollar ATCF.
Describe the economy during the Great Depression using the economic indicators we have studied in class.
Use a 2-year study period to determine which alternative is preferred. The MARR is 15% per year. State your assumptions.
Based on this information, should the existing robot be replaced right now? Assume the robot will be needed for an indefinite period of time.
The Ajax Corporation has an overhead crane that has an estimated remaining life of 10 years. Should the company replace the old crane?
Repeat Part (a) when the $4,000 per year is ignored. What can you conclude about the influence of an expense that is constant over time on the economic life?
Determine how much the annual lease amount of the challenger can increase before the defender becomes the preferred alternative.
How much fuel and carbon dioxide would saved over the lifetime of a passenger car with new standard? Assume a car will be driven 99,000 miles over its lifetime.
If the after-tax MARR is 7% per year, determine the after-tax economic life of this equipment. MACRS depreciation is being used (five-year property class).
Determine the prospective after-tax incremental cash flow associated with new equipment if it is believed that existing machine could perform satisfactorily.
A high-pressure reactor vessel in a pharmaceutical company was purchased for $200,000. What is the after-tax cash flow of the vessel at the end of year 10?
The firm's effective income tax rate is 50%. If the company's after-tax MARR is 5% per year, is this a profitable investment?
What is the after-tax equivalent uniform annual cost (EUAC) of owning and operating this equipment?
If the project has a life of 7 years, what is the minimum annual production level for which this project is economically viable?
If the effective income tax rate is 40%, what is minimum number of years your firm must operate equipment to earn 10% per year after taxes on its investment?
If the MARR is 15% per year (before income taxes), which alternative should be recommended in each of these situations?
What is the greatest annual amount that you can afford to pay for tank leasing without causing purchasing to be the more economical alternative?
Using the IRR method on the after-tax cash flows and a before-tax MARR of 16.67%, is the incremental investment in pump A economically justifiable?
Determine which is best by after-tax analysis using an income tax rate of 40%, an after-tax MARR of 15%, and SL depreciation.
Allen International, Inc., manufactures chemicals. It needs to acquire a new piece of production. Show all numbers necessary to support your conclusions.
Compute the PW of the equipment's ATCFs. Is your answer in Part (a) the same as your answer in Part (b)?
The after-tax MARR is 15% per year, and the company pays income tax at the rate of 34%. What's the after-tax PW of this proposed investment?
In real terms, with 1980 as the reference year, what is today's price of gold per ounce in 1980 purchasing power?