Considering the purchase of an established business

Assignment Help Business Economics
Reference no: EM13998537

Suppose you are considering the purchase of an established business that has the expected profit stream noted below. If want a 20% return on you investment, what is the maximum amount you should pay for the property?

Reference no: EM13998537

Questions Cloud

Advertisement for a professional employment organization : In an advertisement for a professional employment organization it was stated: “Outsourcing can be a cost-effective alternative to the expense and administrative burden of a traditional employer-employee relationship.” Evaluate the costs and benefits ..
Construct a representative indifference curve : Construct a representative indifference curve fore each of the following situations. (Note: Even though some of the goods described exist only in discrete quantities, draw the IC assuming the goods exist in continuous quantities). The two goods are w..
Non-satiation applies to all relevant bundles : In each of the following situations, the possible bundles contain apples and oranges and either 0, 1 or 2 of each. An example bundle would be 2 apples and 1 orange = (2, 1). In each part, there is a description of a set of preferences. In bundles wit..
Preparing a contingent valuation study : If one is preparing a contingent valuation study, what are the sources of bias that one migh encounter? If an unemployed person were hired to work on a public project. An accountant would include all his wages in an estimate of the project’s cost to ..
Considering the purchase of an established business : Suppose you are considering the purchase of an established business that has the expected profit stream noted below. If want a 20% return on you investment, what is the maximum amount you should pay for the property?
What about the equilibrium quantity : Consider the market for coffee beans. Suppose that the prices of all other caffeinated beverages go up 30 percent while at the same time a new fertilizer boosts production at coffee plantations dramatically. Can you tell what will happen to the equil..
Describe the economic characteristics unique to the airlines : Describe the general characteristics of oligopolies. Describe the economic characteristics unique to the airlines
Using the data front calculating growth rates : Using the data front Calculating growth Rates
Minimize the residual sum of squares : Given the bivariate sample regression model Yi = βˆ 0 + βˆ 1Xi + ˆei derive the OLS parameter estimates, i.e., derive the critical values of βˆ 0 and βˆ 1 that minimize the residual sum of squares (RSS).

Reviews

Write a Review

Business Economics Questions & Answers

  Based on direct lines of authority from the top executive

______An organizational form that is based on direct lines of authority from the top executive to the lowest level of employees is called

  Why is the concept of elasticity important

Why is the concept of elasticity important? What does it tell economists? Tell whether you would classify automobile production as either elastic or inelastic in the short run and long run. (Keep in mind that we are talking here about supply elastici..

  Events occur in the domestic car market

Which curve shifts, and in what direction, when the following events occur in the domestic car market? a) The U.S. economy falls into a recession. b) U.S. auto workers go on strike. c) Imported cars become more expensive. d) The price of gasoline inc..

  Considering removing the monopoly rights

The City Council in Bigtown is considering removing the monopoly rights of Bigtown Cable TV, Inc. Bigtown Cable is arguing that the competition in the cable TV market will be chaotic and result in a loss of jobs. As the staff economist for the City C..

  Traditional open market purchases of treasury securities

etween February 2008 and Summer 2009 the Fed supplemented its open market operations with a greatly expanded program of direct lending (both overnight and short term 28 and 84 day loans) to commercial banks, investment banks, brokerage and primary de..

  How does it affect the firm or organization

Explain how does the trade deficit affect U.S. economy. Explain how does it affect the firm or organization you work for.

  Imagine that you work for the maker of a leading brand of

imagine that you work for the maker of a leading brand of low calorie frozen microwavable food that estimates the

  Why consumers price elasticity for ice cream elasticity

Why might consumers’ price elasticity for ice cream cones once they are in an ice cream store be .20 and their longer-term price elasticity be 1.2?

  Net worth on a banks balance sheet is

Net Worth on a bank's balance sheet is

  For budget spent entirely on two goods

For a budget spent entirely on two goods, an increase in the price of one will necessarily decrease the consumption of both if both goods are normal.

  What is the equilibrium price and quantity in this market

The market for pumpkins is a competitive market where the quantity of crates demanded is given by Qd = 18.2 – 0.2P and the quantity of crates supplied is given by Qs = (P/6) – 0.5. Provide the inverse demand and inverse supply functions for pumpkins...

  Destroy millions of dollars worth of crops each year

Which program forces farmers to destroy millions of dollars worth of crops each year?

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