How much money must company set aside in a lump-sum interest

Assignment Help Econometrics
Reference no: EM13200279

U.S. Steel is planning a plant expansion that is expected to cost $13 million. How much money must the company set aside now in a lump-sum investment to have the money in 2 years? Capital funds earn interest at a rate of 12% per year, compounded continuously.

Reference no: EM13200279

Questions Cloud

Find the length of the other base : The area of a trapezoid is 780 cm. The shorter base is 48 cm and the height is 15 cm. Find the length of the other base.
When will it return to the ground : If a ball is thrown upward with an initial velocity of 98 ft/s. How high will it go? When will it return to the ground?
How much is invested per barrel : Transportation is $4 per barrel and paid when received. If the risk free annual interest rate  is 10%, what is the value per barrel after received in the U.S.?  If it is received 3 months late, how much is invested per barrel when it is received?
Define popular grades of commercial carpeting : Muir Manufacturing produces two popular grades of commercial carpeting among its many other products. In the coming production period, Muir needs to decide how many rolls of each grade should be produced in order to maximize profit
How much money must company set aside in a lump-sum interest : U.S. Steel is planning a plant expansion that is expected to cost $13 million. How much money must the company set aside now in a lump-sum investment to have the money in 2 years Capital funds earn interest at a rate of 12% per year, compounded co..
Find the radius of the circle : The base of a solid is a circle of radius ‘ a ‘, and its verticle cross section are equilateral triangles. Find the radius of the circle if the volume of the solid is 20 cubic meters.
Find the volume of water in the bowl : A bowl is shaped like a hemisphere with diameter 30 cm. A heavy ball with diameter 10 cm is placed in the bowl and water is poured into the bowl to a depth of h centimeters. Find the volume of water in the bowl.
How much money will yor money earn at the end : suppose you open an account on january 1 with a deposit of $64. How much money will yor money earn at the end of the quarter march 31 at an interest rate 5% YEARLY?
How many orderings of seven menus taken : Suppose you are a hospital dietitian and you have prepared ten luncheon menus for next week. How many orderings of seven menus taken from the ten menus are possible?

Reviews

Write a Review

Econometrics Questions & Answers

  Determine the units of labor to be hired

The production function F(L) = 6L^(2/3). Suppose that the cost per unit of labor is $8 and the price of output is 4, how many units of labor will the firm hire?

  How much ram do you desire if the price of ram falls

Suppose your designing your computer, with the same benefits from additional RAM described in the proceeding problem. How much RAM do you desire if the price of RAM falls to $50? 2,4,5, or 50. Suppose you are designed a new computer and want to mak..

  How many units should each plant produce

A perfectly competitive firm faces a market price of $10 for its output X. It owns two plants A and B whose total costs are: TCA = 10 + 2X + .25X2 TCB = 15 + .4X + .1X2 = 15 +4 + 10 How many units should each plant produce to maximize profit at that ..

  What happens to lories economic profit in the long run

Calculate Lorie's profit-maximizing output, price, and economic profit. B) Do you expect other firms to enter the singing lesson business and compete with Lorie C) What happens to the demand for Lorie's lessons in the long run

  Calculate the new equilibrium level of income

Given the following variables in the open economy aggregate expenditure model, autonomous consumption (C o) = 200, autonomous investment (I o) = 200, government spending (G o) = 100, export spending (X o) = 100, autonomous import spending (M o) = ..

  How interest rate remains constant over the period of time

Determine the current amount of money that must be invested at 12% nominal interest, compounded monthly, to provide an annuity $10,000 (per year) for 6 years, starting 12 years from now. The interest rate remains constant over the entire period of..

  Write out the payoff matrix for a game

If both bid the same amount, the $100 is split evenly between them. Assume that each of them has only two $1 bills on hand, leaving three possible bids: $0, $1, or $2. Write out the payoff matrix for his game, and then find its Nash equilibrium.

  Calculate the subgame-perfect nash equilibrium of the game

Imagine a market setting with three firms. Firms 2 and 3 are already operating as monopolists in two different industries (they are not competitors). Firm 1 must decide whether to enter Firm 2's industry and compete with Firm 2, or enter Firm 3's ..

  Which is the opportunity cost of producing 100 motorcycles

The United States, at the point where it is currently producing, must give up the production of 300 motorcycles to produce 15 additional SUVs with the same resources. Which of the following is the opportunity cost of producing 100 motorcycles

  How many crates of grapes will it produce in a typical month

A firm called Altobella Vineyard produces Concord grapes in a perfectly competitive market in which monthly demand is given by the equation Q = 1800 - 16P and monthly supply by the equation Q = -660 + 14P, where P is the price per crate of grapes.

  How much maximum person would pay to buy insurance

when I was talking about insurance, when I ask about the maximum this person would pay to buy insurance I said that it would be the risk premium: $4823.1 - Then I derived the utility in this case, with certainty this person has wealth $100,000 + $..

  Calculate the incremental profit fluff rite would earn

Fluff Rite, Inc., manufactures stove top popcorn poppers that it sells to distributors, who then customize and distribute the products to retailers as house-brand poppers. The yearly volume of output is 100,000 units.

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