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Suppose that you win the state lottery. You have two options to receive your winnings. Plan 1 pays you a lump-sum amount of $300,000. Plan 2 pays you $20,000 today, $100,000 after one year, and $200,000 after two years. Assume that the current interest rate is 6%.
1) Using the Excel spreadsheet, calculate the present value of Plan 2. To do this, calculate the present value of each payment. Then sum these three present values in the cell marked "Total." Please enter a whole number, with no decimal point.
2) True or false: You choose Plan 1 because it gives a higher present value.
In the short run, a firm cannot vary its capital, K=2, but it can vary its labor, L. It produces output q. Explain why the firm will or will not experience diminishing marginal returns to labor in the short run if its production function is q=10L+K. ..
McDonald's and its major competitors compete based: In terms of location decisions, firms evaluate the extent to which the labor force is unionized.
Explain how much should firm produce in order to maximize profit. Illustrate what is maximum profit that firm can generate at output level (your answer in a).
The idea of mass electrification of urban areas started out modestly with small "proof-of-principle" demonstrations. Once the feasibility of an infrastructure-level invention is established, much work must be done to actually implement it on a large ..
In my mind it is hard to imagine any competitive advantage that technologies give to business without considering efficiencies. To me, technology is meant to either streamline business processes or automated them altogether. While many argue against ..
q.an entrepreneur wants to undertake a project which generates future revenue of 34 or 9 and requires an initial cost
What is your assessment of business's response to product and service quality and safety? Have they done enough? What is missing from their approaches?
q.qd 2000 - 25 p 2 a where p represents cost as well as a is the number of weekly advertisements. presently the
Dan and Neil are playing Settlers of Catan. Dan has rolled a seven and just put the stopper on a Field which touches one of Neil’s Settlements. Since Dan is a real jerk store, he decides to steal one of Neil’s two cards. Does Dan have a dominant stra..
Remain in mind about your paper that is going to be read by people without previous knowledge of game theory.
For a conservation course- Provide an example of green accounting or environmental economics in action (e.g., Bacuit Bay, Philippines) Alternatives to current economic paradigm-And, explain the relationship between international competitiveness and ..
Demonstrate graphically the cost of income taxation of 30% to consumers and producers for an income of $27,908 and how does the taxation change if the income was $220,874?
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