Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. your friend in mechanical engineering has invented

Your friend in mechanical engineering has invented a money machine. The main drawback of the...

50.1K

Verified Solution

Question

Accounting

Your friend in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $600. However, once built, the machine will last forever and will require no maintenance. The machine can be built immediately, but it will cost $7275 to build. Your friend wants to know if he should invest the money to construct it. If the interest rate is 8% per year, what should your friend do? What is your advice if the machine takes one year to build? The NPV of the machine is $ 225. What is your advice if the machine takes one year to build? The net present value in this case will be $

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

For the parallelogram if m42 5x 28 and m44 3x 10 find m43 The diagram...

Geometry
Q

Succession/resilience/fire ecology: Should ecosystems that are highly resistant to disturbance also be highly resilient, or, would they...

Biology
Q

a.)A 9 m ladder whose weight is 417 N is placed against a smooth vertical wall....

Physics
Q

A) Assume you have just started working in the marketing department for a large firm that...

General Management
Q

28 A radioactive source in the form of a metal sphere of diameter 3 2...

Physics
Q

Slides die st a c SPEEL 1 Evaluate 2 x dx x 2 8 8...

Calculus
Q

2 4 6 8 Let A 1 3 0 5 1 1 6 31 a...

Algebra
Q

On July 1, 20Y7, Pat Glenn established Half Moon Realty. Pat completed the following transactions...

Accounting
Q

Payable, $500; Common Stock, $32,000, Accounts Payable, $2,050, Uites Expense, $3,400, Prepaid Insurance, $1,200, Service...

Accounting
Q

Magical Corporation is a private corporation that sells one week all inclusive packages to their...

Accounting
Q

NIKE, Incorporated, with headquarters in Beaverton, Oregon, is one of the world's leading manufacturers of...

Accounting
Q

please answer ASAP. PART I: INTRA-ENTITY INVENTORY TRANSFER (8 POINTS) Pit Corporation owns 90%...

Accounting