Company X is purchasing a new machine for $949000. The annual expenses, in today's dollars, is estimated to be 92400. Assume that the inflation rate is 0.08 and the company X' real MARR is 0.11 per year. The depreciation for this type of machine is best represented using the declining-balance method where R= 0.29. The project is estimated to last for 9 years. a) What is the BV at year 7? b) What is the PW of these expenses? e) What is the actual value of MARR? Knowing that the project will last for 9 years, what minimum Uniform Annual Revenue, in actual dollars, would this machine need to generate to benefit?
Company X is purchasing a new machine for $949000. The annual expenses, in today's dollars, is estimated to be 92400. Assume that the inflation rate is 0.08 and the company X' real MARR is 0.11 per year. The depreciation for this type of machine is best represented using the declining-balance method where R= 0.29. The project is estimated to last for 9 years. a) What is the BV at year 7? b) What is the PW of these expenses? e) What is the actual value of MARR? Knowing that the project will last for 9 years, what minimum Uniform Annual Revenue, in actual dollars, would this machine need to generate to benefit?
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
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