Radio Frequency Identification (RFID) is a technology used by drivers with “speed passes” at toll booths and ranchers who track livestock from “farm to fork.” Thrift-Mart is implementing the technology to track products within its stores. The RFID-tagged products will result in better inventory control and save the company $1.3 million per month beginning 3 months from now. How much can the company afford to spend now to implement the technology at an interest rate of 12% per year, compounded monthly, if it wants to recover its investment in 2½ years? Also, write a spreadsheet function to display the answer.
What will be an ideal response?
P = 1.3(P/A,1%,28)(P/F,1%,2) (in $ million)
= 1.3(24.3164)(0.9803)
= $30.9886
Spreadsheet function: = PV(1%,2,,PV(1%,28,1.3)) displays $30.9885 (in $ million)
You might also like to view...
The figure below presents the marginal revenue that a farmer can obtain from water, and the marginal cost to the farmer to move the water to her land. There are two farmers with the same marginal revenue and marginal cost curves and there are 200 acre feet available to the two farmers. If the rights to use the water are sold in a competitive market, the equilibrium price of a right to use one
acre foot would be ________.
Fill in the blank(s) with the appropriate word(s).
Photosynthesis uses solar energy and oxygen to create sugars with carbon dioxide as a byproduct
Indicate whether the statement is true or false.
?It is faster to make the root weld using the downhill technique if ______________________.
A. ?you can see all of the joint so you can follow it B. ?the root opening is narrow so the weld has something to support it C. ?The voltage is lowered by 5 to 10 volts D. ?the root opening is uniform and not too wide or narrow
When he became attorney general, Robert Kennedy sought to refocus the attention of the FBI on
A. organized crime and civil rights. B. communist spies and terrorism. C. political corruption and campaign law violations. D. illegal immigration and drug trading. E. automobile theft and illegal weapons.