3. The four independent projects shown below are under consideration by Revamonte Packing. Given: Project Initial Investment, For Bundle, $ W X Y Z 15,000 25,000 10,000 25,000 PW at 18%, $ 8,540 12,325 3,000 10 Determine which projects the company should fund if it is in: a) unlimited condition b) budget-constrained condition with a capital budget of $25,000. Life (Years) 6 8 6 4
Q: The monetary base of China increases if a) Cristiano Ronaldo buys Chinese public debt from Messi.…
A: A country's "monetary base" refers to the entire amount of its currency that is either in…
Q: 30. In a simultaneous-move game of incomplete information, a player's payoff function is determined…
A: A simultaneous-move game is a game where the action of one player is performed in the absence of any…
Q: When marginal cost curve is below an average cost curve, marginal cost O may be increasing or…
A: There is a significant relationship between the marginal cost curve and average cost curve as the…
Q: Use the figure below to answer the following question. Price $42 $15 $12 $11 $6 $2 36 40 Sux…
A: Consumer surplus is the area below demand curve and above price. Producer surplus is the area below…
Q: A certain amount of investment was made annually for 10 years at an interest rate of 6%. On the 14th…
A: Through the course of human history's involvement in finance, the definition of investment has…
Q: Define behavioral Economics and explain why it is different from traditional economics.
A: Introduction: Economics refer to the study of allocation of scarce resources in the presence of…
Q: Answer the question on the basis of the following information. Number of Workers Total Product…
A: Marginal product measures the change in the total product due to a change in the number of workers…
Q: N1 New equipment costing $35,000 has a 5 -year life and no salvage value. Benefits are expected…
A: New Equipment = 35,000 Salvage Value = 0 n = 5 years Benefits = 9000 Combined marginal Income tax =…
Q: the price of a government bond (gilt) traded on the stock market rises above its nominal value,…
A: When the price of the bond rises, its yield falls and vice versa. This happens because demand…
Q: Consider the production function F (K, L) = 9 K+10L. Assuming the market for labor is perfectly…
A: Real wages are wages that have been adjusted to account for inflation, or salaries that are…
Q: Three neighbors share a private dirt road off the main highway that leads to their homes. The Huang…
A: A proportional tax is the rate of tax that remains the same for all the income types of groups.…
Q: Consider the above table. What is the marginal product of the 2nd worker? O 18 O 20 O 40 O 22
A: The total product of labour is the sum of the prices of all the commodities and services generated…
Q: Which one of the following can increase the estimate of damages caused by a particular pollutant? O…
A: Introduction: Economic damage: Financial losses that can be objectively verified as having occurred,…
Q: O lower interest rates that will stimulate AD and lower resource prices that will increase SRAS O…
A: Short run aggregate supply (SRAS) curve depicts the goods and services supplied at each price level…
Q: The Money Supply:
A: Money supply with immediate cash in = Demand or checkable deposits + money market checking account +…
Q: You have a regression: Ỷ =0.42 + 0.9 X − 1.37X2 +0.61X3 (0.24) (0.5) (0.34) N = 50, R² = 0.67 What…
A: Given information: R2 = 0.67 Number of the explanatory variables (K) = 3 Note; X1, X2 and X3 are…
Q: The following graph plots aggregate demand (AD2027AD2027) and aggregate supply (AS) for the…
A: The natural rate of unemployment is the minimum unemployment where the economy stays healthy. The…
Q: In the long run, the total cost function will be: Selected answer will be automatically saved. For…
A: Long run is the time period where no inputs are fixed instead all inputs are variable. In short run…
Q: Question 46 Under a fixed exchange rate, suppose that the economy initially stays at the long-run…
A: “Since multiple questions have been asked by you, we will solve the first question. Please specify…
Q: Prices are still px 4 and Py = 3, and there is no sale tax on T-Rex toys. Income is equal to the…
A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…
Q: What is XYZ's marginal cost when the quantity of production is 10 units?
A: Introduction One of the vital components of production is the cost aspect of it. A producer is faced…
Q: Personal income PI is Select one: a. All income received by households b. All income earned by…
A: Every household works to gain some monetary benefit that provides him/her some satisfaction level in…
Q: O False QUESTION 20 he beneficiary of a you those financially
A: A 12b-1 fee is a fee charged as operational fees for covering the marketing and Advertising cost. It…
Q: Consumption $550 Investment $200 Exports $60 Imports $90 Government Spending $100 Taxes $70…
A: GDP is a measure of all value added created inside an economy. The gross domestic product, or GDP,…
Q: Question 5 An island nation of Santa Clara that grows coconuts consists of two islands: Leavey and…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Use Cramer's rule to find the value for x which satisfies the following simultaneous equations: 7x -…
A: As given equations 7x - 3y = 4 2x +5y =7
Q: Suppose a monopolist faces the demand curve and cost curves shown below. P6 Dollars à d AP 8 FIGURE…
A: A monopolist will produce where MR = MC. MR is the marginal revenue. MC is the marginal cost.…
Q: given froduction function F=K^1/4 L^1/16 price of capital and labor are v and w 1)find short run…
A: In the short run, at least one input is held constant whereas in long run all factors of production…
Q: After the press conference that followed the Federal Open Market Committee meeting on June 19, 2013,…
A: The different combinations of Y(output) and i(interest rate ) at which goods market is in…
Q: Draw a demand, marginal revenue and marginal cost curve for a monopoly firm. Be sure to label axes…
A: A monopoly is a market structure where a single firm is selling the product in the market which does…
Q: Using LCM Method (Unequal Lives) solve the problem: Two location alternatives A and B, where one can…
A: Alternative selection can be done using present worth analysis but to perform present worth…
Q: An oligopolist can price discriminate if it is able to prices on customers with elastic demand and…
A: Customers pay different prices for the same products or services under the pricing model called…
Q: Possibility A B C D Lemonade (L) (units) 45 30 15 0 Consider the above PPF. Which of the following…
A: PPF is the production possibility frontier. It shows the maximum production possibility that can be…
Q: Estimate the cost in 2018 of a 950-horsepower steam turbine air compressor if a 200-horsepower unit…
A: The production of a cost estimate for a new project is based on the construction cost data from…
Q: Find the break-even price, the price below which it is optimal for Giovanni in the long run to exit…
A: A perfectly competitive firm maximizes profit by producing output at a level where Price is equal to…
Q: A company is considering an investment in an item of equipment costing $150,000. Contribution per…
A: Present value refers to the existing value of money which is to be received in the future at a given…
Q: When the U.S government runs a Deficit, the savings curve in the market for loanable funds shifts to…
A: A budgetary deficit is implied as a situation in which the spending is greater than the income.…
Q: Consider the following information for the U.S. economy in 2003 (figures in billions). Personal…
A: The expenditure approach of GDP measures: Gross domestic product is calculated as the sum of…
Q: Consider a general two-stage game of complete but imperfect information. How do we denote the…
A: A multistage game is a game type that is played simultaneously one after the other. Imperfect…
Q: Don is a skilled sculptor who carves old blocks of wood into a range of animal shapes. It costs Don…
A: For multiple questions, we can provide the solution only for one question as per our Q&A…
Q: Fill in the missing values: QP TC TB Tprofit MC MB Mprofit ATC AFC AVC 16 500-50 ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ…
A: Fixed cost is the cost that incur even in zero level of production. Total cost is the sum of Fixed…
Q: Discretionary government spending includes payments made for unemployment compensation. the…
A: Discretionary spending is the amount that the government decides to spend for the upcoming fiscal…
Q: If you increase the total amount of labor, the labor constraints curve becomes flatter. true or…
A: Labor constraint curve is the one which show the relationship between the labor and the wages which…
Q: 3. Breakdown of a cartel agreement Consider a town in which only two residents, Gregor and Haidy,…
A:
Q: Determine whether the following represent examples of fiscal policy, monetary policy, or neither: A.…
A: Fiscal policy includes the set of tools that government uses to control the money supply in the…
Q: Question 19 What is the R-Squared value from the below data? Table 2 ANOVA Regression Residual Total…
A: R-squared tells us the that how much % of total variation in the dependent varaiable is explained by…
Q: A subsidy is the opposite of a tax, but it has precisely the same impact on a market, namely, it…
A: "A subsidy is the opposite of tax" because it gives some incentive to the firm or individual in form…
Q: You are the manager of Taurus Technologies, and your sole competitor is Spider Technologies. The two…
A: * SOLUTION :- Given that , The cost function is C(Qi) = 2Qi, The product is given by P =290 -…
Q: What is the indirect utility function? ○ [V (Pa, Py, I) = V (Px, Py, I) = V (Px, Py, I) V(Pa, Py, I)…
A: The indirect utility function is especially important in microeconomic theory because it develops…
Q: The law of diminishing marginal utility states that.. price must be lowered to induce firms to…
A: Utility refers to the satisfaction derived from the consumption of good. The marginal utility shows…
3. This is
Step by step
Solved in 2 steps
- Q1) The following figures indicate to cash flows for project (X, Y, Z) respectively. project Z: Project X :r=11% cash flow (CF) project Y: r=11% cash flow (CF) r=11% year cash flow (CF) -999 -342 -10202 1 290 105 1300 310 105 1390 3 315 115 1690 4 810 119 2460 5 820 290 2600 825 390 2890 7 905 420 2989 6.Complete Solution needed. A plant produces 300 units of equipment a month of Php 3,600 each. A unit sells for Php 4,800. The company has 10,000 shares of stock at Php 200 par value whose annual dividend is 20%. The fixed cost of production is Php 120,000 a month. a) What is the break-even point? b) What is the unhealthy point? c) What is the profit if production is 60% of capacity? (Specify if it is a gain or loss)15. You want to open a new business but for the first 3 years you wont make any income as it takes time for the paperwork and approvals to process. After your business is up and running, you will make $75,000 per year forever. What is the capitalized cost of the income at 8% per year? What does the capitalized cost represent in layman terms?
- Six mutually exclusive projects A, B, C, D, E, and F, are being considered by ABC Inc. They all have 20 years of project life and have been ordered by first costs so that project A has the lowest first cost, project F the largest. Specifically, detailed cash flows for Projects A is given below. Project A: Initial Cost of $630,000. annual benefit of $70,000 for 20 years The table below apply to all projects (A through F). The data can be interpreted as follows: the IRR on the incremental investment from project C to D is 11.8%. Which project should be chosen using MARR of 12%? IRR on IRR on Increments of Investment Project overall Compared With Project Investment A В C D E A ? B 11.80% 12.1% 12.50% 13.0% 12.2% 12.30% 12.2% 12.1% 11.8% 7% 9% E 11.00% 14% 11.5% 9.8% 11.20% 10% 11.2% 9.7% 8.50% O Project B O Project C O Project D O Project E O Project FWhat is the discounted payback period? How many percent of the initial capital is recovered after 3 years?(c) If A and B are mutually exclusive projects, which project would you select based on the rate of return on incremental investment at MARR = 10%? The rate of return on the incremental investment is %. (Round to one decimal place.) Which project would you select based on the rate of return on incremental investment at MARR = 10%? Choose the correct answer below. Project A O Project B 1: More Info FOT23 n 0 1 Net Cash Flow Project A - $145,000 35,000 35,000 140,000 Project B - $130,000 25,000 25,000 150,000
- All else being constant, if estimated future cash flows increase, the internal rate of return will decrease. Ochange in an indeterminate way. remain the same. increase.1. Assume you have two investment alternatives and they are not mutually exclusive as follows + Year 0 1 2 3 Cash flow (A) Cash flow (B) 200,000 70,000 60,500 40, 500 80,000 50,000 120,000 60,000 And the required return is 10 percent for both projects. Required: Evaluate which one of these projects you will select based on the capital budgeting criteria; the discounted payback period and NPV.Need AsapIllustrate the cashflow diagram and compute for the payback period for a project with the following characteristics, if the minimum attractive rate of return (MARR) is 10%? First Cost $20,000 Annual Benefits $8,000 Annual Maintenance $2,000 in year, then increasing by $500 per year Salvage Value $2,000 Useful Life10 years
- 5- For the following three mutually exclusive alternative projects (A1, A2, or A3), select the best project based on ROR analysis assuming all projects have indefinite lives (infinite) and MARR is 12%. End of Year A1 A2 A3 Initial Cost: 8.000.000 6.000.000 10.000.000 Annual Revenues: 900,000 700.000 1.250.000 A1 b) A2 C) A3 d) A1 and A3 e) A2 and A3 1O A1 and A2 Boş bırakQ4. The cash flow details of a public project is as follows Initial cost /investment BD 250000 Annual benefits/revenues = BD 120000 Worth of annual cost BD 12,000 Salvage value = BD 150000 Interest rate per year = 8% and useful lie = 30 Years Use the three project evaluation methods( PW, FW, AW) and put your decision after every solution. Prepare the cash flow diagram.You are considering an open-pit mining operation. The cash flow pattern issomewhat unusual since you must invest in some mining equipment, conductoperations for two years, and then restore the sites to their original condition.You estimate the net cash flows to be as follows: N Cash flow 0 -$1,600,0001 1,500,0002 1,500,0003 -700,000 What is the approximate rate of return of this investment?(a) 25%(b)38%(c) 42%(d)62%