Consider the two investments shown below, only one of which can be chosen. They are one-shot investments. Given a MARR of 15%, which (if either) should be chosen?
Consider the two investments shown below, only one of which can be chosen. They are one-shot...
Consider the two investments shown below, only one of which can be chosen. They are one-shot investments. Calculate AW2-1 assuming 17.7416 interest rate. EOY Alternative 1 - 21.644 3,766 3,766 3,766 3,766 3,766 Alternative 2 -47,838 1,000 1.800 2.600 3,400 4,200 5,000 5,800 6,600
Question 16 1 pts Consider the market for purple potatoes below and assume that a price ceiling of $30 is imposed by the government. Calculate the deadweight loss: Purple Potato Market $80 $70 $60 $50 $40 $30 $20 $10 S0 500 1000 1500 2000 2500 3000 3500 4000 4500 Pounds of potatoes per day Demand Supply Price Ceiling The deadweight loss is $2500. The deadweight loss is $5000. The deadweight loss is $2000.
For the cash flows below, if 6% is the minimum attractive rate of return, which alternative should be selected? Use rate of return analysis. alternative 1 alternative 2 Year 0 -$5000 -$5000 -3000 2000 4000 2000 2000 4000 4000 2000
Based on the table below, what is the profit maximizing level of output for the monopoly firm assuming that the firm is earning a positive economic profit? Price Quantity Marginal Cost $15 1000 $3 14 2000 4 13 3000 5 12 4000 6 11 5000 7 10 6000 8 a. 1000 units b. 2000 units c. 3000 units d. 5000 units e. 6000
2. [Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should be selected using an incremental analysis? Year -$5000 -3000 4000 4000 4000 -$5000 2000 2000 2000 2000 3. [Problem 8-5] A stockbroker has proposed two investments in low-rated corporate bonds paying high interest rates and selling at steep discounts (junk bond). The bonds are rated as equally risky and both mature in 15 years. Bond Stated Value Annual Interest Payment $67 Current Market Price...
3. (15 points) For the alternatives show below, only one can be chosen. The first and annual costs are estimated. Both options are expected to have a 3-year useful life. If the MARR is 20% per year, determine which alternative should be selected based on rate of return. Calculate by hand or use spreadsheet. Robot X First Cost, $ Maintenance & Operations, $/year Salvage Value, $ Revenue, $/year Life -84,000 -31,000 40,000 96,000 Robot Y -146,000 -28,000 47,000 119,000 3...
3. (15 points) For the alternatives show below, only one can be chosen. The first and annual costs are estimated. Both options are expected to have a 3-year useful life. If the MARR is 20% per year, determine which alternative should be selected based on rate of return. Calculate by hand or use spreadsheet. First Cost, $ Maintenance & Operations, $/year Salvage Value, $ Revenue, $/year Robot X -84,000 -31,000 40,000 96,000 Robot Y -146,000 -28,000 47,000 119,000 Life
Given the following information, calculate how many years this project should be run before it is retired. Assume the cost of capital is 10% p.a. Year 0 (10 000) Net Cash Flows ($) Retirement Values ($) Year 1 2200 6000 Year 2 3000 5000 Year 3 3500 4000 Year 4 2500 3000 Year 5 2000 2000
1. P Q1 Q2 500 1000 100 1000 900 200 1500 800 300 2000 700 400 2500 600 500 3000 500 600 3500 400 700 4000 300 800 4500 200 900 5000 100 1000 A. For the above prices and quantities: Which are the demand quantities and which are the supply quantities? B. Graph demand and supply on one graph. (Plot the points) C. What is the equilibrium price and quantity? Approximately. D. What would a price ceiling set at...
Using the NPV rule, which of the following projects should a firm undertake if it can invest $25000. Year Project A Project B Project C 0 -9000 -1200 -18200 1 2000 5000 0 2 5000 4000 5000 3 1000 6000 10000 4 4000 2000 12000 Group of answer choices A. A B. C C. B D. A and B