Determine the minimum acceptable rate of return

Assignment Help Econometrics
Reference no: EM13239645

buy for 48,000.00 a parking lot. Revenues average 19,000.00 per year for the last 3 years. Annual gross revenue will increase by 10%. The 48,000.00 will come from an inheritance which is currently earning 4.25% interest compounded annually. Expenses annuallly are 15,480.00. Over a period of 10 years, determine the Minimum Acceptable Rate of Return.

Reference no: EM13239645

Questions Cloud

How far from the dock does the boat reach the child : A child is in danger of drowning in the Merimac river. The Merimac river has a current of 3.1 km/hr to the east, How far from the dock does the boat reach the child
What does the anticipated adjustment process imply : Below is the entire assignment. I have most of the answers but I do not know how to respond to the final question in the first part "What does your anticipated adjustment process imply about the CR for the industry
Define assure reproducible absorbance data : what experimental variables must be controlled to assure reproducible absorbance data
Find the total horizontal distance it travels : A stone is thrown into the air with an initial velocity of 50 m/s at 37degress to the horizontal, find the total horizontal distance it travels
Determine the minimum acceptable rate of return : buy for 48,000.00 a parking lot. Revenues average 19,000.00 per year for the last 3 years. Annual gross revenue will increase by 10%. The 48,000.00 will come from an inheritance which is currently earning 4.25% interest compounded annually.
Explain what is the purpose of a t adjustment : What is the purpose of a. the 0% T adjustment and b. the 100% T adjustment of a spectrophotometer
What amounts of capital and labor inputs should be used : Suppose that 3M has the production function q=KL, and the input prices are given by r=$2, w=$3. The 3M wants to produce 600 unit of output and minimize cost of production.
What is her highest point above the board : A swimmer bounces straight up from a diving board and falls feet first into a pool. She starts with a velocity of 3.00 m/s, What is her highest point above the board
Calculate the average and marginal product : The company's new economist has calculated a short-run production function as follows: Q = 7L + 0.6L^2 - 0.1L^3 . Where Q is the number of widgets produced per day and L is the number of production workers working an eight-hour day.

Reviews

Write a Review

Econometrics Questions & Answers

  What is the present worth of the road at an interest rate

The cost of extending a certain road is $850,000. Resurfacing and other maintenance are expected to cost $175,000 every 3 years and lasts for 96 years. What is the present worth of the road at an interest rate of 6% per year (over that period)

  Calculate the marginal product of each accountant

a.) Draw and label a second budget line that shows what happens when the price of the CS rises to $10. b.) Draw and label a third budget line that shows what happens when the price of a CD rises to $10 and Parvez's income rises to $240

  Estimate the future general inflation rate

A Man is planning to retire in 20 years. He can deposit money for his retirement at 6% compounded monthly. It is estimated that the future general inflation rate will be 5% compounded annually. What deposit must be made..

  Calculate output-price and profit under monopoly consditions

A local business in a small college town has a major portion of their business to college bookstore. On the side they also provide services to other local businesses. The local demand is Q=200-5P. The average and marginal cost is $8.

  How much will be available forever beginning in year

A philanthropist working to set up a permanent endowment wants to deposit money each year, starting now and making 10 more (i.e., 11) deposits, so that money will be available for research related to planetary colonization.

  How would the fixed cost per unit change as output increases

Calculate fixed and variable costs of cleaning 0, 3, 8, and 12 rooms and the average total cost and marginal cost at 3, 8, and 13 rooms and enter them in the table (You can cut and paste the table Quantity of output None 3/ 3rd rooms 8/8th rooms 1..

  What is the minimum amount person three is willing to pay

The marginal cost of providing 25 neighborhood street lamps is $2000. There are 3 people living in the neighborhood. Person 1 is willing to pay $800 for the 25 lamps and person 2 is willing to pay $300 for the 25 street lamps.

  What is the optimal pure bundling price

Microsoft sells three different programs in their office suite: Word, Excel and PowerPoint. Each has a marginal cost of $15. There are three types of con- sumers, writers, accountants and professor, who have the following values for the three diff..

  Calculate the nominal interest rate and the after-tax rate

Given an expected real interest rate of 2 percent. For each of the expected inflation rates of 0, 2, 4, 6, and 8 percent. How do I calculate the nominal interest rate and the after-tax expected real interest rate if the tax rate is 30 percent

  How much do andy and ben each accumulate

Some people have the opportunity to invest in stocks in a tax-advantaged retirement plan, such as a 401(k) plan. Consider the difference between Andy, who is able to save in a tax-advantaged plan, and Ben, who must pay taxes on his return each yea..

  Calculate value of the t-statistic

Suppose you have some information on a sample of investment bankers, and are interested in impacts of height and of seniority on their success.

  What is the cross elasticity of demand two brands

Both SmithCo and Jones Inc. sell widgets. SmithCo's sales last month equaled 1000 units and it charged a price of $2. This month Jones Inc. reduced the price it sells its brand of widgets from $2.10 to $2, and SmithCo saw a reduction in the quanti..

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