Determine what is the present value of future profit

Assignment Help Econometrics
Reference no: EM13236575

It is estimated that a mineral deposit will produce 27,000ton in the coming year and 34,300ton in the subsequent year. It is expected that for the first 12 years the production patter will be of the type V.e^α.k and that for the following 8 years the production will be stable at the same rate as on the twelfth year. What is the present value of future profit from this deposit for i = 0.10 if it is assumed that profit per ton after mining expenses will be $5 for the first 8 years and $7 for the remaining 12 years.

Reference no: EM13236575

Questions Cloud

Which is more costly-fencing in the four one-square-mile : There are economies of scale in ranching, especially with regard to fencing land. Suppose that barbed-wire fencing costs $10,000 per mile to set up. How much would it cost to fence a single property whose area is one square mile
Write the null and alternative hypotheses : Write the null and alternative hypotheses and calculate the test statistic, determine the critical value whether or not there has been an improvement.
Located in the middle east or south asia : Which god is important to the Hindu epics The Ramayana and The Mahabharata? Which country is not located in the Middle East or South Asia? Ganges Suta Vishnu Bhagavad Gita.
Calculate the balance bu of a finite time series : Neglecting inflation, find the balance of this time series at 1981, 1993 and 1999 if the quarterly discrete interest rate is ig=0.06. Also develop a flow chart for a subroutine calculating the balance Bu of a finite time series
Determine what is the present value of future profit : It is estimated that a mineral deposit will produce 27,000ton in the coming year and 34,300ton in the subsequent year. It is expected that for the first 12 years the production patter will be of the type V.e^α.k
Explain concentration and is precipitation complete : When 100 mL each of 2.0 × 10-4 M Ca2+ and 2.0 × 10-2 M F- are mixed, what is the remaining Ca 2+ ion concentration and is precipitation complete. The solubility product constant of CaF 2 is 5.3 × 10-9.
Economic power shifted from mediterranean to atlantic : According to the Upshur text, what was the main reason the center of economic power shifted from the Mediterranean to Atlantic societies by the end of the seventeenth century?
What do you think the pharaohs and emperors : What do you think the pharaohs and emperors would have thought of your identification with these myths? Are you likely to become dangerous to them?
Calculate the total electric flux through the y-z plane : Two point charges q = 74.0 nC and q = -74.0 nC are in vacuum located on the x axis at -30.0 cm and 30.0 cm, calculate the total electric flux through the y-z plane

Reviews

Write a Review

Econometrics Questions & Answers

  How to maximize utility with a budget constraint

What combination of the two goods below allows you to maximize your utility with a budget constraint of $14? Show how you arrived at your conclusion in the space provided below. Place your final answers on the lines at the bottom of this page. ..

  Find real wage-employment-output and unemployment

Consider an economy where, consumer's utility function is given as U(C,L)=C-(1/2)L2 . where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2. The turnover cost per labor is (0.36)/(w/p) (a) What happens to t as real w..

  What is the equation of the demand curve for clothing

A consumer purchases two goods, food (F) and clothing (C). Her utility function is U(F,C) = FC + C; thus, MUf = C and MUc = F + 1. The price of food is Pf , the price of clothing is Pc , and the income of the consumer is I.

  How many hours of labor should be hired to maximize profits

Production of widgets (W) uses labor (L) as its only input. The production function is given by W=F(L)=8*L^.5 and the marginal productivity MPL=4/L^.5. If widgets sell for $10, the price of labor is $8/hour, and there is a fixed cost of $25.

  What is the marginal propensity to consume

Income Savings I(planned) Consumption 200 -20 60 400 0 60 600 20 60 800 40 60 1000 60 60 1. Fill in the last  column. 2. The equilibrium level of income in this example is  3. According to this data, the marginal propensity to consume is .

  What is the total surplus

The price at point a is $70 and the price at point c is $10 per bag. The price at point d is $56 and the price at point e is $31 per bag. The price at point f is $67 and the price at point g is $32 per bag.

  Determine how much labor will be hired

a. Calculate the marginal revenue product for each additional unit of labor if output sells for $3 per unit b. Draw the demand curve for labor based on the above data and the $3-per-unit product price c. If the wage rate is $15 per hour, how much lab..

  Calculate accounting profits and economic profits for john

John runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth)

  What is the present value of the payment to be received

You expect to receive a payment of $104 one year from one. Your discount rate is 4 percent. What is the present value of the payment to be received Suppose that the discount rate is 5 percent what is the present value of the payment to be received

  Which event in the story occur in the market for factors

Consider the story: Sonya earns $900 per week working as a nurse at Mercy Hospital. She uses $300 to purchase a recliner at Sears. Sears pays Victoria $800 per week to work as a sales associate. Victoria uses $400 to purchase medical services at Me..

  Develop an estimate for the cost of washing and drying

Develop an estimate for the cost of washing and drying a 12-pound load of laundry. Remember to consider all the costs. Your time is worth nothing unless you have an opportunity to use it for making, or saving money on other activities.

  How much do you gain or lose by making the loan

Suppose you lend $20,000 at a 7.5% interest rate to a friend for one year. At the time of the loan your expected rate of inflation is 2.5% while your friend's expected rate of inflation is 2.9%. However, by the end of that year prices have increas..

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