Present equivalent of the anticipated revenue stream

Assignment Help Business Economics
Reference no: EM131523818

An oil well is expected to produce 100,000 barrels of oil during its first year an is expected to decrease by 10% a year. The price of oil is expected to be $60/barrel. What would be the present equivalent of the anticipated revenue stream at an interest rate of 12% for 7 years.

Reference no: EM131523818

Questions Cloud

Create a ledger using the three-column form of account : Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries.
Identify multiple business pressures on xerox : Respond to the following: Identify multiple business pressures on Xerox. Describe some of the company's response strategies
Equal annual deposits : What is the amount of 10 equal annual deposits that can provide five annual withdrawals when a first withdrawal of $5,000 is made
Explain why the lines separating the three regions : What is the fundamental question that sensitivity analysis answers? Describe the role that sensitivity analysis plays in the development of a requisite.
Present equivalent of the anticipated revenue stream : What would be the present equivalent of the anticipated revenue stream at an interest rate of 12% for 7 years.
What the differences that exist between the arab and muslim : What are the differences that exist between the Arab and Muslim Americans in United States. What should the government do to curb these effects
What variables could be subjected to sensitivity analysis : Some friends of yours have been considering purchasing a new home. They currently live 20 miles from town on a two-acre tract.
Analyze the three types of experimental designs : Analyze the three types of experimental designs and the variations of each and describe internal and external validity with experimental research designs.
Research an existing publicly traded company : Research an EXISTING publicly traded company compiling a comprehensive marketing plan for this company throughout the course.

Reviews

Write a Review

Business Economics Questions & Answers

  What is the price elasticity of supply for oil

Assume world oil supply is 72 million barrels per day at a price of $49 per barrel. Suppose that if the price per barrel of oil increases to $58 per day, then 83 million barrels of oil will be supplied. Using the midpoint formula, what is the price e..

  When set of complements is produced and sold by same firm

When a set of complements is produced and sold by the same firm, the seller can sometimes increase overall revenues by strategic pricing of different complements, in some cases even charging less than the marginal cost of producing one of the items i..

  Elucidate how the financial aid department

Provide examples of different tools businesses use to identify the elasticity of their different customers. Also elucidate how the financial aid department determines student elasticity.

  Exclusion of municipal bond interest from income taxation

Construct a numerical example to show that the exclusion of municipal bond interest from income taxation is equivalent to a government subsidy of state and local capital spending. Explain why it costs the government (taxpayers) more to subsidize this..

  Draw hypothetical supply and demand graphs for men

Draw hypothetical supply and demand graphs for men and women to both occupations assuming that some of each gender prefers each job. Now, assume that discriminatory actions take place in the restaurant business preventing men from becoming chefs. Sho..

  What is incentive zoning and performance zoning

Suppose a local government has a tax digest of $ 500 million and feels it must raise $ 15 million for the operation of the its school and general government. What would be the millage rate? What characteristic of real estate leads to the need for pub..

  Hope of matching efficiency of competitive pricing system

According to Hayek, a social planner has no hope of matching the efficiency of a competitive pricing system because

  Reserve requirements associated with existing deposits

It has been determined that, in aggregate, financial institutions with depository accounts currently hold excess reserves equal to $3 billion—that is, they hold $3 billion more than is necessary to meet the reserve requirements associated with existi..

  Single measure of a society economic well-being

1) U.S. real GDP is substantially higher today than it was 60 years ago. What does this tell us, and what does it not tell us, about the well-being of U.S. residents? What are the limitations of the GDP as a measure of economic well-being? Given t..

  Classical economists believe that supply creates demand

Classical economists believe that supply creates demand—that the production of goods generates demand. People working and making salaries spend their money on goods. The production of goods (supply) creates purchases (demand). Which of the two views ..

  Manufactured plastic parts for small equipment

George Mackee thought of himself as bright, energetic, and [having] lots of potential. So why was this happening to me, he thought. George, married, two children, with his wife, Mary, had moved to Hondo, Texas, from El Paso four years ago and was now..

  Discuss example of globalization that you have experienced

Globalization has enriched our cultural lives and has brought a number of economic benefits. At the same time, it has also been the source of disruptions, some of them, like lost jobs, quite serious. Discuss the pros and cons of restraining globaliza..

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