### What should be used in project analysis calculations

Assignment Help Macroeconomics
##### Reference no: EM1330167

information about Inflation Problems

1) An economist has predicted that for the next five years, USA will have an 8% annual inflation rate, followed by five years at 6% inflation rate.This is equivalent to what average price. This is equivalent to what average price change per year for the entire ten year period?

2) One economist has predicted that during the next six years prices in the USA will increase 55%.After that he expects a further increase of 25% in the subsecuent 4 years, so that prices at the end of ten years will have increased to 180% of the present level.Compute the inflation rate F, for the entire ten year period.

3) An investor wants a real rate of return i (rate of return without inflation)of 10% per year on any projects in which he invests.If the expected annual inflation rate for the next several years is 6%, what interest i should be used in project analysis calculations?

### Previous Q& A

#### Determine the equation for the unit formulation

Determine the equation for the unit formulation.

#### Explain e-commerce payments vs bricks and mortar payments

Explain E-Commerce Payments Vs Bricks and Mortar Payments and How does an e-commerce payment differ from a bricks-and-mortar payment

#### Determining the state lottery

Assume that you just won the state lottery. Your prize can be taken either in form of \$40,000 at the end of each of the next 25 years (i.e., \$1 million over 25 years) or as a lump sum of \$500,000 paid immediately.

#### Parameters of copyright infringment laws

What is copyright infringement? What is the history and purpose of the copyright infringement law?

#### Description of your company

You are a manager or supervisor of a company, and you need to acquire trainers to train your staff on using Microsoft® Office® programs. You must request proposals from various training companies and trainers to fill this need.

#### What are the hardest things in learning a new language

What is the hardest thing in learning a new language like Java and C++? How best to master these languages for a beginner with only procedual programming language experience.

#### Inflation by definition real wages have factored inflation

It cannot be as the inflation by definition real wages have factored inflation in.

#### Explain e-commerce payments versus brick-and-mortar payments

Explain E-commerce payments versus brick-and-mortar payments and Online and offline sales are different

#### Family first farm was founded in 2006

Family First Farm was founded in 2006 by the Douglas family. Because it was a small family business, Oliver Douglas decided to keep things simple and operate as a sole proprietorship.

### Similar Q& A

#### Observability and accuracy of real interest rates compared

Illustrate what does this tell you about the observability and accuracy of real interest rates compared to nominal interest rates.

#### Elucidate the price elasticity of demand

If the price set is the profit-maximizing price, elucidate the price elasticity of demand for calculators faced by the plant.

#### Graph of weekly budget line

Tom earns \$15 per hour for up to 40 hours of work each week. he is paid \$30 per hour for every hour in excess of 40.

#### Illustrtae what is the current cost of a share of stock

Illustrtae what is the current cost of a share of stock for a firm with \$5 million in balance-sheet equity.

#### Domestic price level using is or lm or bp model

Using the IS/LM/BP model, demonstrate the effect of each of the following changes. Assume that the economy is a small country with perfect capital mobility and a flexible exchange rate.

#### Changes in equilibrium real output and price level

Explain how each of the following scenarios would cause the aggregate demand, short-run aggregate supply, and/or long-run aggregate supply.

#### Calculating money multiplier and nominal values of deposits

What is the value of the money multiplier? What is the value of the nomial money supply? What are the nominal values of deposits, currency and reserves?

#### Estimate the relationship among inflation-unemployment

Estimate the relationship among inflation,unemployment and business cycle on the industry.

#### A no of empirical studies of automobile demand

A no of empirical studies of automobile demand yielded the subsiquent estimates of income and price elasticities

#### Significance of time trend and seasonality

Additionally, several other configurations were also estimated. The results are shown on the following pages.  Based on this data, answer the following questions. Comment on the significance of time trend and seasonality.

#### Calculate the multifactor productivity figures for labor

Calculate the multifactor productivity figures for labor and capital together. Elucidate why these figures might be greater in the subsidiary.

#### Reasons and causes behind higher wage in germany

Give three reasons why firms produce in Germany rather than in a lower-wage country.

#### 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!