Business, 27.06.2019 19:50 netflixacc0107

Eddie’s precision machine shop is insured for $700,000. the present yearly insurance premium is $1.00 per $100 of coverage. a sprinkler system with an estimated life of 20 years and no salvage value can be installed for $50,000. annual maintenance costs for the sprinkler system are $3,700. if the sprinkler system is installed, the system must be included in the shop’s value for insurance purposes, but the insurance premium will reduce to $0.40 per $100 of coverage. eddie uses a marr of 15%/year. a. what is the annual worth of this investment? b. is the filter economically justified?

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Eddie’s precision machine shop is insured for $700,000. the present yearly insurance premium is $1.0...

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