5. Under the following parameter assumptions: A=10,n=1, d=0, B=1/2, a = 1/3, and ko= = 0.0500 kt an initial capital intensity of a. 2.0789 b. 2.8361 c. 3.3127 d. 6.6667 3 the value of in the steady state is
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- You have been offered a unique investment opportunity. If you invest $10,800 today, you will receive $540 one year from ne $1,620 two years from now, and $10,800 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 5.5% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 1.5% per year? Should you take it nowProblem 2: Assume that a company has the following data for one of its manufacturing cells:Theoretical velocity: 40 units per hourProductive minutes available (per year): 1,200,000Annual conversion costs: $4,800,000Actual velocity: 30 units per hourRequired:1. Calculate the actual conversion cost per unit using actual cycle time and the standardcost per minute.2. Calculate the ideal conversion cost per unit using theoretical cycle time and the standardcost per minute. What incentive exists for managers when cycle time costing is used?3. What if the actual velocity is 36 units per hour? What is the conversion cost perunit? What effect will this improvement have on delivery performance? Cheat Notes :Cycle time (time/units produced)velocity (units produced/time)Suppose the production functions of the decision maker belowindicate the effect of seeding rate on yield in the two states:y1 = −1.6 + 0.085x − 0.0005x2 wet season y2 = −1.7 + 0.087x − 0.0006x2 dry season with yi the yield per hectare in tonnes according to state i;where x is the seed rate in kilograms per hectare.For a wet year i = 1 and a dry year i = 2.These functions are shown in the following figure. Suppose the price of wheat is pw = 150$/t, the price of seedspx = 0.15$/kg and that the other variable costs are v = 110$/ha on a sown area of a = 50ha. Calculate the net income of this farmer in the above case.What is the optimal decision for the farmer in this case?
- . You wish to determine the dynamically efficient rate of extraction of a non-renewable resource of two time periods, t1and t2. The demand function for the resource is known to remain constant over time, and is given by the inverse demand function: Pt = 700 – 0.25*Xt Marginal extraction costs for the resource are constant at 200 (MEC = 200). All of your work (equations, calculations, etc.) must be shown. In addition, you must draw graphs to help you illustrate and explain your solution. You will receive full credit only if you fully explain and illustrate your answers. a) The total available stock, S, is 2500 units and the discount rate is r = 0.05 (5%). What are the dynamically efficient quantities of resource extraction in the two periods? Please call these extraction rates x1 and x2. Also, determine the market price for the resource in each period, P1 and P2. Next, determine the marginal user cost in each period. Finally estimate total welfare (CS and PS) for the…Suppose that KCA University intends to introduce a new course from September 2020. The college estimates that it will incur a fixed cost of Ksh.2.4M per annum and an average annual variable costs of Ksh.8,000 per student to run the course: Required: Calculate the number of students KCA should enroll in order to breakeven if it intends to charge annual fee of Ksh.40,000 per student. Using the level of enrolment obtained in (i) above, compute the level of expected total revenue and total cost of the college. Suppose that you are the Vice Chancellor of KCA University, will you introduce this course if the maximum number of students Kenya University and College Central Placement Service (KUCCPS) will allocate you is 200? (Justify your answer – show all relevant calculations).ec8bbe18814005fde4649?start=true .2 Modeling with Linear Functions OPEN I am < Previous 3 attempts remaining. TAMU_QID: BM_0004c A company has fixed costs of $540 and can produce 20 items for a total cost of $1,380. The company then sells these items to the public for $72 each. Determine each of the following functions. Enter all answers below in slope-intercept form, using exact numbers. a. Find the company's linear cost function. C(z) = b. Find the company's linear profit function. P(z) = %3D Submit answer 456 PM 86°F Sunny 0006 9/13/2021
- What is the overall rate of return on a $100,000 investment that returns 20% on the first $30,000 and 14% on the remaining $70,000? Enter the letter that best corresponds to the correct answer. 0.15 8% 18.20 % 15.5 8% d 17% (average)y1=100, y2=20 beta=0.5 and i=100% Calculate optimal saving s=______Use this method, Exponential decline model, to solve ( in petroleum economics) The production of the oil well decline exponentially, the initial flow rate is 1500 STB/day, the production rate of this well become 120 STB/day in the fourth year, find the production rate after 25 months from the beginning, find yearly production and production rate for this well for the next 4 years?
- Given (5), derive the kt+1-equation and determine the steady state solution(s) for the capital intensityIn a project you are managing if you estimated the optimistic (a), most likely(m) and pessimistic (b)times for activity B to be 5, 8 and 10 days respectively then the best estimate for the meaning of activity B is? a.7.67 b. 7.83 c. 8.00 d. 10.00A company produces and sells luxury goods and is able to control the demand for the product by varying the selling price. The relationship between price and demand is found to be: p=10-(42/D^2)+2Dwhere p is the price per unit in million dollars and D is the demand per year. The company is seeking to maximize its profit. The fixed cost is $59 million per year and the variable cost is $25 million per unit. The production capacity is 42 units per year, and the company produces at least 1 unit per month.a) Derive how to find the number of units that should be produced annually to maximize profit.b) What is the maximum profit per year?c) What is the annual breakeven point?d)What is the company’s range of profitable output per year?