Consideration has a seven-year projected life

Assignment Help Microeconomics
Reference no: EM13686071

A project under consideration has a seven-year projected life. The initial investment for the project is estimated to have a mean of $12,000 and a standard deviation of $1,000. The annual receipts are independent, with each year's expected return having a mean of $2,500 and a standard deviation of $300. MARR is 10 %. Decide the probability that the PW is negative.

Reference no: EM13686071

Questions Cloud

Ethical behavior in business paper : Ethical behavior in business paper.
How is selling price determined at optimum level of output : A firm operating under monopolistic competition - a price maker - is facing an unexpected inventory build up due to a weakening national economy. How does this firm allocate output between its several plants? How is the selling price determined at th..
Semiconductor manufacturing involves taking a flat disc : Semiconductor manufacturing involves taking a flat disc of silicon
Compare this proposal to a strict balanced budget rule : In view of persistent government debt and deficit problems some of economists propose cyclically-adjusted balanced budget rule for government. Compare this proposal to a strict balanced budget rule. Which is preferable? What problems do you see with ..
Consideration has a seven-year projected life : A project under consideration has a seven-year projected life. The initial investment for the project is estimated to have a mean of $12,000 and a standard deviation of $1,000. The annual receipts are independent, with each year's expected return hav..
Businesses like to charge customers dissimilar prices : Why do Movie theatres, airlines, and many other businesses like to charge customers dissimilar prices based on time of the day, age, and purchase dates? Provide an example of a price discrimination for a good or service that you thought it to unfair...
The weekly demand for beer : The weekly demand for beer
Efficient in minimizing the principal-agent problem : Discuss the various forms of organization. Evaluate the organizational form that would be most efficient in minimizing the Principal-Agent problem.
The role of individual mandate in the a§ordable care act : Discuss how the exercise above tells you about the role of individual mandate in the A§ordable Care Act?

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Are there economies of scope

Your firm produces two products, Q1 and Q2. An economic consulting firm has estimated your cost function to be C (Q1, Q2) = 100 + Q1Q2 + (Q1)^2 + (Q2)^2.  Are there economies of scope?

  By how much should government purchases the gdp

For simplicity, let's assume that every household has a marginal propensity to consume (MPC) of 0.75. If the government implements a fiscal policy involving its purchases of goods and services

  The five alternatives shown here are being evaluated by the

the five alternatives shown here are being evaluated by the rate of return

  You have been asked to explain the differences between

you have been asked to discuss the differences between the microeconomic definitions of supply and demand and the

  Evaluate impact of the starting discovery in terms of supply

Many nutritionist regard tofu as virtually a wonder food. Imagine now that yet another benefit of tofu is discovered. Mixed with a few cheap ingredients it greatly increase gasoline mileage just as it enhances performance in humans.

  What were the amounts of real gdp

Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken and the price of each bucket of chicken was $10. In 2005 the price per bucket of chicken was $20 and 25,000 buckets were produced.

  This news analysis is based on a scenario in which the firm

this news analysis is based on a scenario in which the firm is operating on the declining portion of its average total

  Will total revenue in the industry increase of decrease

Consider the demand for mobile phones. Suppose the price elasticity of demand for the market as a whole is .80. A. If all mobile-phone companies simultaneously increased their prices, will total revenue in the industry increase  of decrease

  1 stag hunt two guys go hunting for food and each can

1. stag hunt. two guys go hunting for food and each can choose to hunt stag or hunt hares. only if both players hunt

  Questionconsider a firm which produces a good y using two

questionconsider a firm which produces a good y using two inputs or factors of production x1 and x2.thefirms production

  Why a monopolist would probably earn fewer profits

As long as there are barriers to entry, a monopoly can always find some price-output combination that generates positive economic profits. As long as the demand curve slopes down, a monopoly can always find some price-output combination that genera..

  Public sector project being considered

A public sector project being considered in a town and is expected to have the following cash flows. Annual benefits = $100,000 Expected annual dis-benefits (quantifiable) = $25,000 Annual cost= $50,000 If MARR is 3 percent, what is the modified B/C ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd