Obtain long term income to finance ongoing projects

Assignment Help Business Economics
Reference no: EM131002404

An engineering company in Virginia that owns 250 acres of valuable land has decided to lease the mineral rights to a mining company. The primary objective is to obtain long term income to finance ongoing projects 5 and 15 years from the present time. The engineering company makes a proposal to the mining company that it pay $50,000 per year for 20 years beginning 1 year from now, plus $200,000 five years from now and $300,000 fifteen years from now. If the mining company wants to pay off its lease immediately, how much should it pay now if the investment should make 10% per year? Show what each variable in the formula equals as well as formula and all steps in work

Reference no: EM131002404

Questions Cloud

How much work does a supermarket checkout attendant : How much work does a supermarket checkout attendant do on a can of soup he pushes 0.310 m horizontally with a force of 5.20 N? Express your answer in joules and kilocalories.
At what speed should he cycles so that he reaches his office : A man cycles with a speed of 10 km/h and reaches his office at 1 p.m. However, when he cycles with a speed of 15 km/h, he reaches his office at 11 a.m. At what speed should he cycles so that he reaches his office at 12 noon?
Problem regarding the phenomenological grounds : On phenomenological grounds, and from past  experience,  a  gamma distribution has been postulated for the population from which the data was sampled. The population parameters are unavailable. Carry out an A-D test to validate this probability mo..
Implement changes to improve the quality of health care : In a 1-2 page paper, analyze at least two obstacles hospital administration may face as they implement changes to improve the quality of health care
Obtain long term income to finance ongoing projects : An engineering company in Virginia that owns 250 acres of valuable land has decided to lease the mineral rights to a mining company. The primary objective is to obtain long term income to finance ongoing projects 5 and 15 years from the present time...
Which users may be interested in each type of ratio : What do the liquidity, profitability, and solvency ratios reveal about the financial position of the company?
Companies occasionally sell more than one security : Companies occasionally sell more than one security for a single price. How is the issue price allocated among the separate securities?
Problem based on first-order linear system : Consider the Problem based on first-order linear system. Show that the solution for t ≥ 0 is x(t)= β (t - τc)+(x0 + βτc)eAt. Make an accurate sketch of u(t) and x(t) (versus t) on the same graph, for x0 = 0, β = 3 and A = 0.5.
Mean time between occurrences of safety violations : (i) Carry out a two-sample t-test to compare the mean time between occurrences of safety violations for operator "A" to that for operator "B"; carry out a second two-sample t-test comparing the means for operator "A" to that for operator "C". ..

Reviews

Write a Review

Business Economics Questions & Answers

  Compared to the individual whose cost of time is high

While purchasing _____ an individual whose cost of time is low will visit a larger number of dealers compared to the individual whose cost of time is high.

  Demand curve is horizontal-supply curve is upward sloping

Suppose that an excise tale of $1 is placed on sellers in a market for widgets. Using diagrams indicate whether none, some, or all of the tax is passed on to the consumer in the form of a higher price for each case described below. Demand curve is ho..

  Is the demand for iphones price inelastic or elastic

What would happen to unit sales and total revenue for this textbook if the bookstore reduced it's price? Is the demand for iPhones price inelastic or elastic? Why? Is income elasticity high or low?

  What product characteristic refers to the situation

What product characteristic refers to the situation where consumers place higher value on a product if other consumers also use it?

  How government grants would influence the business

From the scenario, explain how government grants would influence the business's operations. Be sure to emphasize the taxes, social benefit, and price level for both substitute goods and current products.

  Winning tickets in power ball lottery

Suppose you had one of the three winning tickets in last week’s Powerball Lottery; your prize would have been $188 million if you took your winnings in the form of an annuity. If the annuity were paid in 20 annual instalments using an interest rate o..

  What was the absolute amount of increase in real income

What was the absolute amount of increase in real income? - Make your calculations of the percentage change in real income and the absolute change in real income using the approximation formula and using the more precise method with index numbers.

  Firm can sell its product for more than its fixed costs

If a firm can sell its product for more than its fixed costs, but not for more than its totals costs:

  How outcome in that market will not be very different

The outcome in that market will not be very different than if it were a perfectly competitive industry." Explain if he is correct and how you would respond to his reasoning.

  Forecasting models can be divided into three groups

Forecasting models can be divided into three groups

  Calculate consumer surplus in the case of entry deterrence

Calculate firm 1's profit-maximizing output and profits in the absence of potential competition and calculate the output and profits of both firms in case firm 1 accommodates entry.

  What is the unit labor cost of cars

Suppose it takes a total of 100 hours to produce a car (mathematically speaking, this means one hour of work “produces 0.01 cars”). If the average wage in car making is $50 per hour, and each car needs $1,000 worth of inputs other than labor, C1: Wha..

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