Find the npv of the investment

Assignment Help Econometrics
Reference no: EM131131831

Consider an investment that cost $150,000 and has a cash inflowof $40,000 every year for 5 years. The required return on theinvestment is 8%. Find the NPV of the investment and determine ifit should be purchased.

Reference no: EM131131831

Questions Cloud

What mass would be required for a period of 2.0 s : Suppose we could "tune" this system by varying the mass. What mass would be required for a period of 2.0 s ?
How can human resource management support the organization : Employees are valuable assets to an organization. How can human resource management support the organization to enhance employees' knowledge and skills, to empower employees, and to build good teamwork?
Complete the following schedule of cash payments : The partners of Clash Company have decided to liquidate their business. Noncash assets were sold for $125,000. The income ratios of the partners M. Jones, J. Strummer, and P. Simonon are 3:2:3, respectively.
What is driving the real price of gold : What is driving the real price of gold? Conduct an analysis of demand and supply shocks in the gold market. Need 20 bullet points along with data and its source
Find the npv of the investment : Consider an investment that cost $150,000 and has a cash inflowof $40,000 every year for 5 years. The required return on theinvestment is 8%. Find the NPV of the investment and determine ifit should be purchased
How do the principle relate to either your either internship : Identify any four business ethics principles that you feel are the most important and why? How do these principles relate to either your either internship, place of employment, or at your College - please provide examples.
What is the power of the implanted lens : The lens is designed to put the image of the distant object on the retina. What is the power of the implanted lens? Hint: Consider the image formed by the cornea to be a virtual object.
Villa america company reported net income : Villa America Company reported net income of $85,000. The partnership agreement provides for salaries of $25,000 to S.Wiborg and $18,000 to G. Murphy.
Help making a collage : I need help making a collage.- I need pictures for the following words combine.- I just need an idea for each word and then I can do the pictures.

Reviews

Write a Review

Econometrics Questions & Answers

  Do you anticipate earning a profit or a loss

You are a manager T Glass, Inc.- a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results form the study are summarized in the table below, and are based on 5 uni..

  How much pollution reduction should appalachian coal

Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equip..

  Determine range of outputs over firms technology

The following data are available for output (Q) and Long Run Total Cost (LTC) for a firm. Using appropriate calculations determine the range of outputs over which the firm's technology exhibits Increasing, Decreasing or Constant Returns to Scale.

  What was the present worth of the savings associated

Video cards based on Nvidia's GeForce2 processor typicallycost $250. Nvidia realeased a light version of the chip that costs $150. If a certain game makerwas purchasing 3000 cards per quarter

  Compute marginal cost & average total cost for each output

The office-cleaning market is perfectly competitive. Consider a typical off-cleaning firm that currently faces $24 in fixed costs and an $8 hourly wage for workers. The price the firm gets for each office cleaned is $56 at the present market price.

  Compute the equilibrium price and quantity if income falls

If demand is represented by Qd = 50 -.5P +.005I where I is income and I=$50,000 and supply is represented by Qs = 100 +.4P - 2W where W is wages and W=$15.00. a) Compute the equilibrium price and quantity where wages=W=$15.00.

  What is the value of equilibrium real gdp

Assume autonomous real investment is $30, autonomous real government spending is $30, and autonomous real net exports is -$20. Compute Aggregate Expenditures at each level of real GDP. What is the value of equilibrium real GDP

  Which lottery do you prefer

Your utility if a function of income (i), given by: \(U = 10i\) as long as i is less than or equal to 300. If I is greater than 300, your utility is a constant equal to 3,000. Suppose you have a choice between having an income of 300 with c..

  What is the revenue-maximizing ticket price

During a recent home stand, suppose the club offered $5 of the $12 regular price of reserved seats, and sales spurted from 3200 to 5200 tickets per game. A. Derive the funcion that describes the price-output relation with price expressed as a funct..

  Compute the after-tax nominal interest rate

Let the before-tax nominal interest rate be 8 percent, and let the inflation rate be 4 percent. If the tax rate on nominal interest income is 25 percent, compute the after-tax nominal interest rate and the after-tax real interest rate.

  Calculate the premium of the second policy

Suppose your company is considering three health insurance policies. The first policy requires no tests and covers all preexisting illnesses. The second policy requires that all covered employees test negative for the HIV virus.

  How the advertisers bargain by telling each newspaper

Advertisers are willing to pay $10 to advertise in one newspaper but only $19 to advertise in both, because they're willling to pay twice to reach the same subscriber. what's the likely bargaining negotiation outcome

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