Equivalent Annual Saving Economic Assignment Help
Many learners choose economics as their major since it gives them the understanding they need to understand complex markets and sophisticated, logical, approaches to problem-solving. The study of economics is not as simple as it may seem because one must be familiar with current concepts like scarcity, market forces, the declining marginal output principle, and others. My homework writers are knowledgeable about a range of economic topics. An illustration of such a query is;
Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $160,000 and sell its old low-pressure glueball, which is fully depreciated, for $28,000. The new equipment has a 10-year useful life and will save $36,000 a year in expenses. The opportunity cost of capital is 11%, and the firm’s tax rate is 21%. What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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