You are being asked to evaluate the worthiness of an investment that requires you to spend $100,000 today in return for receiving $30,000 each year for seven years, beginning four years from now. Which of the following statements is TRUE If the MARR = 10%, I would conclude that this is a profitable investment. Present Worth = $30,000 X 7 - $100,000. If the MARR = 10%, I would conclude that this is not a profitable investment.
Q: TRUE OR FALSE QUESTION please explain the reason briefly (3 sentences) If the demand curve is a…
A: The responsiveness of the quantity demanded to a change in price is known as price elasticity of…
Q: Consider a representative consumer that has preferences over bundles of consumption goods c, and…
A: Consumer has preference over : Consumption(c) & Leisure (l ) Total Number of hours = h Real…
Q: Consider the figure to the right. The quantity Q₁ is 2,200 units, the price P₁ is $4 per unit, and…
A: Monopoly refers to a market form in which only a single seller exists. This market structure…
Q: Answer the question based on the following information: Suppose 30 units of product A can be…
A: A technological relation is used in the production produced by the input and output. It expresses…
Q: For the utility function U = (Qx0.5+Q,0.5)2 and the budget 167 = 10Qx+8Qy find the CHANGE in optimal…
A: Utility functionU = (Qx0.5+Qy0.5)2Budget Constraint167 = 10Qx + 8QyTherefore , Price of x = 10Price…
Q: Refer to Table 6-6. If the price of a 9-hole round of golf is $19, then Andrew will play. Select…
A: The marginal value is the additional value that the consumer gets from consumption of an additional…
Q: Along an indifference curve, if the marginal rate of substitution is 3, then the consumer is willing…
A: An indifference curve depicts a combination of two products in varied proportions that offers a…
Q: Pizza Indifference Curve 2 Indifference Curve 1 Coffee Refer to the Figure. Which of the following…
A: The indifference curve is a graphical representation of consumer preferences and choices between two…
Q: 3. The effect of negative externalities on the optimal quantityof consumption Consider the market…
A: The market equilibrium quantity is where the private marginal benefit curve intersects the private…
Q: Assume that a consumer has a given budget or income of $12 and that she can buy only two goods,…
A: Budget is the amount of income that a consumer has to spend on goods and services.
Q: If the wage rate 'W' is $25 and the cost of capital is $25, calculate the average cost of producing…
A: Wage (w) = $25while cost of capital or rent (r)= $25.No of units in the long run=2000We know, total…
Q: True or False: A BMW car costs $40,000 this year, but only $8,000 in 1980. It’s more expensive today…
A: Price index is a tool which is used to measure inflation in different time periods.It is basically a…
Q: Y Y Assume that the economy is at point E. With no further shocks or policy moves, the economy in…
A: Long run refer to a period of time in economics where all factors of production becomes variable.…
Q: What information does the Human Development Index (HDI) give about countries in 2018? A.…
A: Economic growth, stability, and the dynamics of international trade all hold pivotal positions in…
Q: If a legal price ceiling for gasoline is set above the equilibrium price: Multiple Choice a surplus…
A: Price ceilings are measures taken by the government to limit the price of a good or service.This…
Q: For the utility function U = (Qx0.5+Q,0.5)2 and the budget 133 = 8Qx + 10Qy find the CHANGE in…
A: The utility function: Budget constraint: Comparing the budget constraint with the general equation…
Q: Answer the question on the basis of the data given in the following production possibilities table.…
A: PPF is the production possibility frontier. PPF shows the production possibility of two goods in an…
Q: Suppose that when Jane is presented with the following two menus, her choices from them are as below…
A: The axioms of rational choice are fundamental principles that underpin the theory of consumer…
Q: A nation can produce two products: steel and wheat. The table below is the nation's production…
A: Opportunity cost is the sacrifice of production of one good when the production of another good is…
Q: When the economy experiences a business cycle expansion, the demand for bonds ______ as a result of…
A: A business cycle is the cyclical movement in the economy. A cycle of expansion, recession,…
Q: Refer to the following graph to answer the following questions: Line 1 Vertical Axis C OOOOO D…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: In 1950, Nicaragua and Brazil had roughly the same size economies. Now, Brazil's economy is almost…
A: Economic examination is a systematic course of looking at and assessing economic data, patterns, and…
Q: Carefully explain what is happening in the following market indicate the impact if any on demand,…
A: Here, it is given that the University mandates the purchase of principles of economics by all the…
Q: a. b. C. d. H 19. In the graph above, a movement from point G to point H would represent: A decrease…
A: An aggregate demand curve depicts the total spending on domestic products and services at each price…
Q: What would shift the demand curve for gatorade to the left? An increase in the consumer income,…
A: This can be described as a form of goods that are always used by the consumer together there is no…
Q: Explain how the following situation would affect a nation's production possibilities curve. A switch…
A: A curve that shows the maximum amount of two goods or services an economy can produce given its…
Q: As Target's chief pricing strategist, every year you must decide whether or not to engage in Black…
A: Equilibrium in this context refers to a state in a game where no player can gain any advantage by…
Q: Suppose that a small town has seven burger shops whose respective shares of the local hamburger…
A: Four-firm concentration ratio refers to the total market share held by the four largest firms in an…
Q: What do the wealth and foreign trade effects have in common? They both help to explain: shifts in…
A: Aggregate demand curve represents quantity demanded corresponding to different price level.Change in…
Q: a) decrease in demand. Price b) increase in quantity demanded. c) increase in demand. E Refer to…
A: In a free market, the equilibrium price and equilibrium quantity is determined by the forces of…
Q: Which of the following people is least likely to be hurt by unanticipated inflation? a. An owner of…
A: Unanticipated inflation is a condition in which people, companies, or government authorities did not…
Q: Assuming all else equal, the demand curve for reserves in an economy shifts to the left. Which of…
A: It can be defined as a concept that shows how much currency of one nation is valuable in terms of…
Q: The market equilibrium quantity is units of pharmaceuticals, but the socially optimal quantity of…
A: This can be defined as a concept that shows the positive or negative impact of any particular…
Q: Categorize each of the following as an experience good, a search good, or a credence good or…
A: Search Good:A search good is a product or service for which consumers can assess its qualities or…
Q: We're stilling thinking about Douglas. No matter what your answers were to question 12 above, assume…
A: ***Since the student has posted a question with multiple subparts, the expert is required to solve…
Q: Suppose that the demand and supply functions for good x are given as follows: Q-120-2P, +1+P, and…
A: The demand function for good x: The supply equation for good y: Value of exogenous variables: Income…
Q: Venezeula’s economy has been destroyed by hyperinflation. Assess two possible market structures…
A: Hyperinflation alludes to an extremely high and routinely accelerating rate of inflation, where the…
Q: According to an IRS study, it takes a mean of 330 minutes for taxpayers to prepare, copy, and…
A: The normal distribution is a continuous probability distribution that is often used in statistics.…
Q: If the United States is currently importing 14 million barrels per day at a world price of $4.00 per…
A: A country imports the difference between quantity demanded and quantity supplied at the world price…
Q: Figure 13-7 PREK Refer to Figure 13-7. Which of the figures represents the production function for a…
A: Production function of a firm represents the relationship between input of the firm and output of…
Q: Figure 15-8 Price A B с MR X Y Y Z MC D Quantity Refer to Figure 15-8. What is the monopoly price…
A: In a monopoly market structure, There exists a single seller. There exists high barriers to entry…
Q: Show the effect this shock has on the market for pistachios by shifting the demand curve, supply…
A: Price elasticity of demand(PED) often referred to as simply "elasticity," is a fundamental concept…
Q: Explain how the following situation would affect a nation's production possibilities curve. A switch…
A: A curve that depicts an economy's maximum potential output for two goods or services, based on its…
Q: Capital Goods 0 A E B D C F PP PP₂ PP3 Consumer Goods Multiple Choice Refer to the diagram. An…
A: A Production Possibility Curve (PPC) is a graphical representation that shows the maximum output…
Q: The entry of women into the workforce resulted in: Increase in quantity of labor Increase in labor…
A: A "workforce" alludes to every one individuals participated in or accessible for work, either in a…
Q: 765432 0907 SSA321 17 16 15 14 13 12 11 10 6 8 6 k 5 4 ($). Accumo 12 S D Quantity
A: Consumer surplus means the additional satisfaction a consumer gets while buying a good and services…
Q: 8) Firms A-E are involved in the production of some good. What is the total value added by all the…
A: The given stages of production rate is given as Stages of Production Sales value of ProductFirm…
Q: Based on the graph for the market for blueberries in the United States, the plentiful crop has…
A: A demand curve depicts the inverse relationship between the price and quantity demanded of a…
Q: Tax cuts shift aggregate demand
A: The expenditure of the government described as money that is spent by the government or public…
Q: The market equilibrium quantity is ▼ tons of paper, but the socially optimal quantity of paper…
A: Market equilibrium refers to a state in which the quantity of a product or service demanded by…
You are being asked to evaluate the worthiness of an investment that requires you to spend $100,000 today in return for receiving $30,000 each year for seven years, beginning four years from now. Which of the following statements is TRUE
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
- 9 A one-year investment has quarterly returns of 2.0% in Q1, -15.6% in Q2, 13.7% in Q3 and 9.1% in Q4. What is its total annual return (i.e., its compound annual growth rate or CAGR)? Give your answer in percent using two decimals (e.g., for 12.346% write 12.35).An advertising campaign will cost $ 200 000 for planning and $ 40 000 in each of the next six years. It is expected to increase revenues permanently by $ 40 000 per year. Additional revenues will be gained in the pattern of an arithmetic gradient with $ 20 000 in the first year, declining by $ 5000 per year to zero in the fifth year. What is the IRR of this investment? If the company’s MARR is 12 percent, is this a good investment? answer should be=12.4%Suppose that you plan to retire at 65. You invest $8,000 per year on your birthday for 10 years starting on your 25th and ending on your 34th birthday. Since you are young, you take more risks with your investments, and earn a rate of return of 12%. Then, you have children and decide to put all your retirement savings into investing in a college fund for them. You leave all accumulated funds in the retirement account, and it earns 6% per year, reflecting an (unwise) rise in caution during middle age. How much money will you have to retire on at 65 (31 years after you stop contributing)
- Assume that your father is now 50 years old and plans to retire after 10 years from now. He is expected to live for another 25 years after retirement. He wants a fixed retirement income of Rs. 5,00,000 per annum. His retirement income will begin the day he retires, 10 years from today, and then he will get 24 additional payments annually. Your father has current savings of Rs. 10,00,000 and he expects to earn a return on his savings @ 10% p.a., annually compounding. How much (to the nearest of rupee) must your father save during each of next 10 years to meet his retirement goal?12. A Solar Sea Power Plant (SSPP) is being considered in a North American location known for its high temperature ocean surface and its much lower ocean temperature 100 meters below the surface. Power can be produced based on this temperature differential. With high costs of fossil fuels, this particular SSPP may be economically attractive to investors. For an initial investment of $100 million, annual net revenues are estimated to be $15 million in years 1-5 and $20 million in years 6–20. Assume no residual market value for the SSPP. a. What is the simple payback period for the SSPP? b. What is the discounted payback period when the MARR is c. Would you recommend investing in this project? per year? SROOM USCSuppose an initial investment of $100 will remain $50/year fo r three years (assume the $50 is received each year at the end of the year). Is this a profitable investment?
- At age 38, you start saving for retirement. If your investment plan pays an APR of 7% and you want to have $0.9 million when you retire in 27 years, how much should you deposit monthly? You should invest $X each month. (Do not round until the final answer. Then round to two decimal places as needed.)You are an avid 34 year old coffee drinker, and never miss a day without your $4.00 Starbucks caffe latte. However, you also understand the importance of the time value of money and saving for retirement early, so you set a New Year's Resolution to abstain from your coffee-drinking ways this year. At the end of the year, you will place all of your coffee savings in a retirement account. How much will this savings amount to when you retire in 30 years at the age of 65, if invested at a 7.5% annual interest rate (rounded to the nearest dollar)? Assume that the cost of the cup of coffee remains unchanged throughout the year.You have just purchased 200 shares of General Electric stock at $15 per share. You will sell the stock when its market price doubles. If you expect the stock price to increase 12% per year, how long do you expect to wait before selling the stock? (See Figure.)
- You are planning to invest $4,000 in an account earning 8% per year for retirement. a. If you put the $4,000 in an account at age 23, and withdraw it 50 years later, how much will you have? b. If you wait 10 years before making the deposit, so that it stays in the account for only 40 years, how much will you have at the end? a. If you put the $4,000 in an account at age 23, and withdraw it 50 years later, how much will you have? In 50 years you would have $750424. (Round to the nearest cent.)Barnes' Binoculars is considering licensing the technology to manufacture a new bifocal binocular. If Barnes decides to undertake the project, they will spend $1 million immediately to license the technology and build a prototype. If the prototype works as expected (60% probability), they will spend $5 million in Year 1 to build a manufacturing facility. This will take a year to complete. If the prototype doesn't work out (40% probability), they will abandon the project, sell the license, and receive $100,000 in Year 1 for the license. Once the manufacturing facility is built, then cash flows will be $8 million per year for 10 years starting in Year 2 if there is good market acceptance (70% probability). Cash flows will be $2 million per year for 10 years if there is poor market acceptance (30% probability). The WACC is 10%. Calculate the ENPV of the project. $14.12…You belong to a group of local entrepreneurs that owns a 10-acre blueberry farm. You could farm the land yourselves, or rent it out for $7,000 per year. Another option is to sell the land this year at its market price of $80,000. The price of the land next year will be $78,000. If you sell it, your group has an investment opportunity from which you expect to make a return of 6 percent per year. Question: Whať's the total return from renting the land (i.e., the rental payment minus the economic depreciation) is ? Answers: $7,000. $5,000. $3,000. $1,000.