2) a) Suppose that a firm considers an investment in 2021. The cost of that investment which will be paid in 2021 is 50 000 000. The lifetime of that investment is 5 years. The following cashflows are expected from that investment 2022: 10 000 000 2023: 12 000 000 2024: 12 000 000 2025: 10 000 000 2026: 8 000 000 Given this; set out the equation from which MEI (marginal efficiency of investment is derived)

2) a) Suppose that a firm considers an investment in 2021. The cost of that investment which will be paid in 2021 is 50 000 000. The lifetime of that investment is 5 years. The following cashflows are expected from that investment 2022: 10 000 000 2023: 12 000 000 2024: 12 000 000 2025: 10 000 000 2026: 8 000 000 Given this; set out the equation from which MEI (marginal efficiency of investment is derived)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5.
an investment has been made to an account at a simple interest rate of 12.122% and is expected to earn P350,475 after 8 years and 5 months. if you plan to withdraw all the money on the account at the end of 5 years to start a small business, how much money can you receive? a. 743,512.573 b. 551,715.543 c. 482,510.371 d. 621,387.366
An investment of $10,000 today, will pay 6 yearly payments of $2,500 each. Determine the rate of return on this investment to the second decimal place.
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1. Consider a wine dealer who has k bottles of wine. The dealer can sell them now (t = 0) or can store it for some time and then sell them later. The value of k bottles at t-th month is given by: Vt = ket The dealer can use the sales revenue as principal in a risk-free investment at rate r. (a) If the dealer sells them now, what is the sales revenue?
8. For a given procedure, F = 0.7, and the discount rate of 4%, for all 4 years solve for the QALY given: year 1 q 0.2 year 2 q = 0.3 year 3 q 0.5 year 4 q 0.7 discount of 4% (used as (1/(1.04)year ) will equal: year 1 = 0.96 year 2 = 0.92 year 3 = 0.89 year 4 = 0.86 Solve for the QALY number of years. Round-off to the nearest integer. O 2 0 1 0 4 0 3
Suppose that you invest $3,000 in stock. Fiveyears later, your investment yields $8,568. What isthe rate of return of your investment?
13. An industrial engineer invests $100,000.00 now, and in three years he adds $3,000.00 to the investment. He is able to withdraw $5,000.00 the first year increasing by $1,000.00 each year for 10 years. He also will be withdrawing $50,000.00 in five years and $20,000.00 in 10 years. Using net present worth analysis, determine the rate of return on the investment. Using equivalent uniform annual worth analysis, determine the rate of return.
Sub : EconomicsPls answer ASAP.Dnt CHATGPT.I ll upvote. Thank You
2. Suppose there is a plot of land in Balik Pulau which the state government is considering developing. The first proposal is to use the land to create an open-space camping area and another proposal is to develop into a cultural heritage area. The open space camping area is expected to last 12 years while the cultural heritage area is expected to have a life span of 20 years. The net present value of the open space camping area is RM4.5 million while the net present value of the cultural heritage area is RM3 million. Assume the discount rate is 5%. a) Using the roll-over method, which project will be chosen? b) Using the equivalent annual net benefit (EANB) method, which project will be chosen?
2
INR Ltd’s earnings per share next year is expected to be $2.10 and this is expected to grow at5% p.a. for the foreseeable future. Its required rate of return on equity has been estimated at 9%p.a. INR Ltd has a policy of reinvesting 40% of its earnings. The present value of INR Ltd’sgrowth opportunities is closest to: A. $7.78.B. $8.17.C. $11.11.D. $12.11