5. A steam boiler is purchased on the basis of guaranteed performance. A test indicates that the operating cost will be $300 more per year than the manufacturer guaranteed. If the expected life of the boiler is 20 years, and money is worth 8%, what amount should the purchaser deduct from the purchase price to compensate for the extra operating cost?

5. A steam boiler is purchased on the basis of guaranteed performance. A test indicates that the operating cost will be $300 more per year than the manufacturer guaranteed. If the expected life of the boiler is 20 years, and money is worth 8%, what amount should the purchaser deduct from the purchase price to compensate for the extra operating cost?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter14: Pricing Techniques And Analysis

Section: Chapter Questions

Problem 1.1CE: What life cycle cost concept begins raising concerns by year 5 with any electric vehicle (EV)? If...

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Find solutions for your homework Search home / study / business / economics / economics questions and answers / a small machine has an initial cost of p20,000 with a salvage value of p2,000 and a life of ... Your question has been answered Let us know if you got a helpful answer. Rate this answer Question: A small machine has an initial cost of P20,000 with a salvage value of P2,000 and a life of 10 ye... A small machine has an initial cost of P20,000 with a salvage value of P2,000 and a life of 10 years. If your cost of operation per year is P35,000 and your revenues per year is P9,000, what is the approximate rate of return on the investment?
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O Tes W List G tes N Un A Sha E 031 A Sh: G ger G Go G Csi G go G Gr Day%205%20-%20Earned%20value%20analysis.pdf 13 /35 100% Sample question- performance index Your sponsor thinks your project is on track. The CPl is o.85 and the SPI is 1.30. What do you report to your sponsor? Project is progressing faster and cesting less-than planned Nothing until you bring the project back on track. C. Project is progressing faster and costing more than planned А. В. Project is progressing slower and costing more than planned. D. Activate Wir Go so Settinos to 13°C Mostly cloudy
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