How much would the gradient have to be in each year

Assignment Help Microeconomics
Reference no: EM131004267

The present worth of income from an investment that follows an arithmetic gradient was projected to be $475,000. If the income in year one is expected to be $25.000, how much would the gradient have to be in each year through year 8 if the interest rate is 10% per year?

Reference no: EM131004267

Questions Cloud

What is the equivalent uniform annual cost of the fence : In an effort to curtail illegal entry into the United States, a FOM fence has been proposed for certain portions of the U.S. bor- der with Canada. The cost for erecting the fence in year 1 is expected to be $7 million, decreasing by  $500,000 each..
What is the future worth of the revenue through the end : MidAm Charter purchased 5 planes so that it can initiate service to small cities that have airports with short runways. MidAm expects revenue of $1 million in year 1, $1.2 million in year 2, and amounts increasing by $200,000 per year there- after..
Does the website contain a clear visual story : Is the author of the website clearly stated? Does the author provide contact information? Does the individual or organization list all of the qualifications or credentials?
Critical thinking-website analysis : The objective of this assignment is for you to increase your knowledge about how businesses are leveraging the internet to conduct business. Because you will be using public websites to do your research, the focus will be on marketing, sales, and ..
How much would the gradient have to be in each year : The present worth of income from an investment that follows an arithmetic gradient was projected to be $475,000. If the income in year one is expected to be $25.000, how much would the gradient have to be in each year through year 8 if the intere..
Ranging from traditional to contemporary : Oakmaster Furniture Inc. produces several lines of oak furniture, ranging from traditional to contemporary. The firm has been in business for more than 20 years, serving primarily the western half of the United States. Headquartered in Portland, O..
What is the recovery of chloroform from this column : What is the recovery of chloroform from this column? 12 marks Provide the correct set of calculations - What are the liquid and vapour flow rates in the two sections of the column?
What was the equivalent annual worth of the income : NMTeX Oil company owns several gas wells in Carlsbad, NM. Income from the depleting wells has been decreasing according to an arithmetic gradient for the past five years. If the income in year 1 from well no. 24 was $390,000 and it decreased by $..
What was the present worth of swa savings per gallon : If the market price of fuel was $0.50 per gallon higher than the option price in year 1, $0.60 per gallon higher in year 2, and amounts increasing by $0.10 per gallon higher through year 5, what was the present worth of SWA's savings per gallon if..

Reviews

Write a Review

Microeconomics Questions & Answers

  Demand elastic or inelastic at this price and quantity

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

  Leadership-trade and specialized business association

Define the following terms/concepts and their significance for G&B relations: leadership association, trade association, and specialized business association. Emphasize the differences among these concepts in your definitions.

  Which led the retailers to lower prices

During the recession in the early 1990s, retailers observed that consumers were spending a lot more time searching for good bargains than ever before, which led the retailers to lower prices.

  How many firm will there be?

without knowly the demand function can we say how much broccoli each firm produces in long run equilibrium? if so under which assumption. if not explain why?

  Law of diminishing marginal utility

Which of the following best illustrates the law of diminishing marginal utility?

  Which explains the source of consumer surplus forgood

a. Good Ais an inferior good and Goods A and B are substitutes. b. Good Ais an inferior good and Goods A and B are complements. c. Good Ais a normal good and Goods A and B are substitutes. d. Good Ais a normal good and Goods A and B are complements. ..

  What is the optimal strategy for the monopolist

This price reduction would also increase sales to 220,000 units during the relevant years. a) Make the decision tree. b) What is the optimal strategy for the monopolist?

  Decrease in government spending initially-primarily shifts

A decrease in government spending initially and primarily shifts which curve in what direction? An increase in government spending initially and primarily shifts which curve in what direction?

  What incentives do pharmaceutical companies

What incentives do pharmaceutical companies have to undertake R&D in medicines for treating AIDS? Malaria? Erectile dysfunction? What can policymakers do about this?

  How did the economic downturn and recovery impact business

How did the economic downturn and recovery impact business in Greece and Turkey? How do these countries differ in that respect, and what economic, political, or cultural explanations might account for any differences?

  What challenges would face the greek government

What challenges would face the Greek government if they wanted to undertake fiscal policy to address the problems described in b?

  Define economic profit or loss, atc

b. What is the Economic profit or loss you are making? c. What output level is the minimum point for Average Total Costs (ATC)? d. What output level, Q, and price/trip, P, will economic profits be zero? Note

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