How much would you accept now for this future inheritance

Assignment Help Microeconomics
Reference no: EM131003099

1. Susan can install the same more-efficient motor in another assembly line. This other line is producing (and operating) 25% more each year. The more efficient motor has no sal- vage value after a life of 5 years, costs $3000 more installed, and will save $800 the first year. What is the PW if MidWestTech uses an i of 10%?

2. A company in Texas will "buy" inheritances before they are actually received. If you will receive $20,000 when a rich aunt dies, how much would you accept now for this future inheritance? Money is worth 8% to you, and you "guesstimate" that your aunt will live 6 more years. (Answer: $12.60K)

Reference no: EM131003099

Questions Cloud

Identify a particular ethical issue : Research Paper: For your final research paper (6-7 pages, typed and double-spaced) you are to write a paper in which you identify a particular ethical issue and assess it in light of the religious ethos which is found in Christianity, Islam, Judai..
What will be the increase in consumer surplus : Using the supply and demand equations below, calculate the impact of a proposed $20.00 tariff. What will be the loss in government revenue? What will be the increase in consumer surplus? What will be the increase in overall wealth for the country?
Prepare a human resources management report : Importance of managing employee performance at work. Scenario-Prepare a Human Resources Management report - Describe how the skills that employees require to curry out jobs in an organisation are identified.
Determine the capital recovery on this equipment : An automated inspection system was purchased by Kal Tech Engineering Systems at a cost of $120,000 and was depreciated using the MACRS method. The system was sold after 4 years for $50,000. Determine the capital recovery on this equipment.
How much would you accept now for this future inheritance : Susan can install the same more-efficient motor in another assembly line. This other line is producing (and operating) 25% more each year. The more efficient motor has no sal- vage value after a life of 5 years, costs $3000 more installed, and wil..
Use increasing cost or bowed outward production possibilty : Use the increasing cost or bowed outward production possibility frontier to explain why the sudden imposition of a national military draft in a nation with large numbers of college students would be politically unpopular. Would a voluntary, professio..
Explain whether two bridges are complements or substitutes : The Fraser is a large river running through the Fraser Valley and past the city of Vancouver. The original port Mann bridge, built in 1963, was replaced by a new toll bridge in 2013. Another crossing at the old Pattullo bridge is not tolled, and is a..
Two lanes of traffic going in the same direction : Suppose there are two lanes of traffic going in the same direction. The left lane has one percent of the number of cars in it compared to the right lane, and is moving at a fast speed. Would such a move increase or decrease the average speed of all c..
What is the client cash flow diagram : Perfect Temp is a mechanical engineering design firm that specializes in heating and cooling systems for factories and warehouses. What is the client's cash flow diagram for the following costs and savings of an air-to-air heat exchanger?

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Explain the effect on dollar

Suppose that the euro zone is the home "country" and the US is the foreign country, which means that exchange rate, which has the dimensions of local currency per unit of foreign currency, is in units of euros per dollar.

  Did merger affect the product or price

Mergers are treated differently, depending on the type of merger and the effect on the industry. There are three types of mergers: Horizontal mergers are between companies selling similar products in the same market; Vertical mergers are between f..

  Think about the ethical implications of research

Think about the ethical implications of research. Are there research practices that are ethically questionable - what, and how? What can you do to make certain that your research is ethical

  How will international trade influence people production

What is the law of comparative advantage? According to the law of comparative advantage, what should be the distinguishing characteristics of the goods a nation produces?

  One of the services the fed provides to commercial banks

Which of the following is not one of the services the Fed provides to commercial banks? If the price of one good change whiles other prices are held constant,

  What will price and ouput be if there is no dominant firm

What will price and ouput be if there is no dominant firm Now assume that there is a dominant firm, whose marginal cost is constant at $6. Derive the residualdemand curve that it faces and calculate ots profit-maximizing output and price.

  Find profits grow at an annual rat

The head of the accounting department at a major software manufacturer has asked you to put together a pro forma statement of the company's value under several possible growth scenarios and the assumption that the company's many divisions will rem..

  What is her monthly payment if she wants to repay the loan

A student finishes her college after accumulating a $30,000 federally backed student loan over 4 years. The loan charges 3.5 % interest compounded monthly. What is her monthly payment if she wants to repay the loan (amortize) over the next 6 years..

  What is the new equilibrium level of income

What is the marginal propensity to consume in Freedonia, and what is the marginal propensity to save - What is the new equilibrium level of income?

  Does human resource management (hrm) interest

Does human resource management (HRM) interest you as a career? Why or why not? What are your  periences working with human resource professionals?

  Decided to purchase new logging equipment

A wood products company has decided to purchase new logging equipment for $100,000 with a trade-in of its old equipment. The old equipment has a BV of $10,000 at the time of the trade-in.

  Suppose a firms production function

Suppose a firms production function is given by Q= L^1/2 * K^1/2. The marginal product of labor and the marginal product of capital are given by: MPL= K^1/2 /2L^1/2 and MPk= L^1/2/2K^ 1/2.

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