Johnson company calculated the npv of an investment

Assignment Help Macroeconomics
Reference no: EM13335806

Johnson Company calculated the NPV of an investment, and using a discount rate of 10%, the NPV was zero. Does this mean that the investment is unacceptable? What does it mean?

Reference no: EM13335806

Questions Cloud

What two properties characterize public goods : What role do proper rights play in creating common property resources? Why are common property resources subject to market failure due to non excludability?
What happens in the foreign exchange market for columbian : There is a large increase in the global demand for roses and Colombia is the biggest producer of roses. At the same time, the central bank of Columbia increases the interest rate. What happens in the foreign exchange market for Columbian pesos to
What are the limits to our long-term economic growth in the : What are the limits to our long-term economic growth in the US? Is there anything that our government can do to address these limits, or would it be a bad idea to try?
Graph the supply and demand for real money balances : It is given that the money demand fucntion is (m/p)d=1000-100r, where r is interest rate in percent. The money supply(M) is 1000 and the price level(p) is 2.
Johnson company calculated the npv of an investment : Johnson Company calculated the NPV of an investment, and using a discount rate of 10%, the NPV was zero. Does this mean that the investment is unacceptable? What does it mean?
How much charge will end up on each capacitor plate : If the same number of 7.00 uF are connected in series with the same 3.00 V battery, how much charge will end up on each capacitor plate
Define why does libr have a stronger lattice energy then lif : Why does LiBr have a stronger lattice energy then LiF Why does NaCl have a higher lattice energy then Mg3N2. ( I thought it would LiF because smaller ion and Mg3N2 because greater charge)
Would you say that his equilibrium constitutes nash : Watch the movie “A Beautiful Mind”. Pay attention to the scene where Nash argues for an optimal equilibrium (the bar scene). Would you say that his “equilibrium” constitutes Nash equilibrium? Explain.
Define ionic compounds has a higher lattice energy : Specify which compounds in the following pairs of ionic compounds has a higher lattice energy. (A) KCl or MgO (B) LiF or LIBr (C) Mg3N2 or NaCl Expalin why for each

Reviews

Write a Review

Macroeconomics Questions & Answers

  Did equilibrium quantity increase-decrease or indeterminist

On this graph indicate how a decrease in the price of a substitute good will or will not shift the curves and cause a new equilibrium point. Label any new demand or supply curves you may have to draw as D2 and S2 label any new equilibrium point yo..

  Monopoly profit and cartel profit

The ten firms have banded together to form a cartel, and the cartel sets the monopoly price. The cartel agreement limits each firm to an output of one-tenth of the total amount demanded at the cartel price.

  Elucidate the impact of the global financial crisis

Elucidate the impact of the global financial crisis of 2008-2009 on the economies of industrialised countries and emerging markets. What effect do problems like these have on attitudes towards free trade.

  Change in budget line-increase in tax by government

Suppose instead that the government wishes to impose a value tax of $0.25 on each dollar of the consumer's expenditure on good 1.Show the effect of imposing this tax in a graph containing before and after budget lines.

  Determine the value of the marginal propensity to consume

In national income accounting, grain fed to a hog at a commercial hog farm is considered a(n) a. final good b. intermediate good c. consumer good d. capital consumption allowance

  Contractionary monetary policy

An economy is facing inflationary gap shown in the ac­companying diagram. To eliminate gap, should the central bank use expansionary or contractionary monetary policy?

  Average marginal and average variable cost curves

How would each of the following affect the firm's marginal, average, and average variable cost curves?

  Illustrate the point price income also cross elasticities

Illustrate the point price, income, also cross elasticities at the present values. Interpret your answers, saying how much a 1% change in each variable impacts demand.

  Pricing strategies for media corp

Media Corp. has determined that its customer base is divided into two groups: sports fans and news junkies. There are one million sports fans and one million news junkies.

  Calculate the demand for dollars and supply

Suppose the supply of dollars increase by 600 billion at each exchange rate. Explain if the increase in demand results from a large purchase b the Chinese of a new American-made airplane or a large purchase by Americans of new lower priced Chinese..

  Calculate the maximum amount of money

Assume that it is impossible to discover which individuals belong to which group. Will members of group 2 insure against this loss in a competitive insurance market.

  How much revenue as a share of output did inflation

The amount that the government raises from the inflation rate tax is ΔM. (ΔM = change in money stock or the printing of more money or the change in the amount of money today from yesterday). Write ΔM as a fraction of nominal GDP.

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