Describe your answer for each item below in complete

Assignment Help Microeconomics
Reference no: EM13387495

A generous university benefactor has agreed to donate a large amount of money for student scholarships. The money can be provided in one lump sum of $12 million in Year 0 (the current year), or in parts, in which $7 million can be provided at the end of Year 1, and another $7 million can be provided at the end of Year 2.

Describe your answer for each item below in complete sentences, whenever it is necessary. Show all of your calculations and processes for the following points:

Assuming the opportunity interest rate is 8%, what is the present value of the second alternative mentioned above? Which of the two alternatives should be chosen and why?
How would your decision change if the opportunity interest rate is 12%?
Provide a description of a scenario where this kind of decision between two types of payment streams applies in the "real-world" business setting.

Reference no: EM13387495

Questions Cloud

Recognition of concepts jim armstrong operates a small : recognition of concepts. jim armstrong operates a small company that books entershytainers for theaters parties
Give an example of a good practice for each of the : give an example of a good practice for each of the following preparing for an audio conference hosting an audio
1 explain the basic accounting equation how does the double : 1. explain the basic accounting equation. how does the double entry accounting system work?2. what is the
Discuss specific challenges that you may have experienced : determine the primary manner in which orion has increased your business knowledge in the related subject area.discuss
Describe your answer for each item below in complete : a generous university benefactor has agreed to donate a large amount of money for student scholarships. the money can
What are the primary reasons for audit failures and the : 1. what is the purpose of an audit performed by a cpa?2. do audits signify to financial statement users
Review the information the company has provided including : assignment 2 corporate governance and final project week 5 relationships and financial performance company investment
This is the final part which has a spread sheet regarding : this is the final part which has a spread sheet regarding trend analysis with indexes of at minimum of 5 different
Recommend how fiscal and monetary policy can move those : part 1 assume that the country is in a period of high unemployment interest rates are at almost zero inflation is about

Reviews

Write a Review

Microeconomics Questions & Answers

  Estimate gdp impact of a positive change in govt spendings

You are told that 75 cents out of every extra dollar pumped into the economy goes toward consumption (as opposed to saving). Estimate the GDP impact of a positive change in government spending that equals $25 billion.

  1nbspnbspproduction possibility frontiers studying or

1.nbspnbspproduction possibility frontiers studying or socializing?nbspa. nbspdraw a production possibilities curve for

  The price of pumpkins in austin

Suppose that the price of pumpkins in Austin has fallen by 10%, while total spending on pumpkins in Austin has gone up by 2%. Which of the following could explain those changes

  Describe a way to improve the incentive structure

Describe a situation of incentive misalignment that you have personally observed (ideally in your personal work environment, but could also be in a relationship, in the consumer marketplace, in public policy, etc.) and generally describe a way to ..

  Which country will experience the larger outward shift

Country A and country B produce the same consumption goods and capital goods and currently have identical production possibilities curves. They also have the same resources at present, and they have access to the same technology. Currently, countr..

  How many crates of grapes will it produce in a typical month

Ascaro incurs monthly total costs according to the function TC= 49+4q+q2 and monthly marginal costs according to the function MC= 4+2q, where q is the quanity of grapes produced bu Ascaro.

  In what sense is the price of tickets too low

In Rolling Stone magazine, several fans and rock stars, including Pearl Jam, were bemoaning the high price of concert tickets. One superstar argued, "It just isnt worth $75 to see me play.

  What would you recommend that the monopolist do to maximize

A pure monopolist determines that at the current level of output the marginal cost of production is $2, average variable costs are $2.75, and average total costs are $2.95

  Terms of business stealing and product variety externalities

A hotel owner, having heard that new hotels consider to open in area, says, We have too many hotels in this town already. Statistics show that vacancy rates average 20% on any given night.

  What are the corresponding prices and mucs

What are the efficient quantities for each of the two periods? What are the correspondingprices and MUCs?

  Budget deficits and debt principle

Taking business personally, Recognize some policy change that you propose to decrease the federal government budget deficits and debt.

  What are the major determinants of a product

What are the major determinants of a product's price elasticity of demand? Studies indicate that the demand for Florida oranges, Bayer aspirin, watermelons, and airfares to Europe are elastic. Why?

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