Present value of net benefits for the project

Assignment Help Macroeconomics
Reference no: EM131153779

An analyst predicts that the present value of benefits of a two-year project would be $220,000 and the present value of the scrap value at the end of the project's life is expected to be $18,000. Given a 5% discount rate, he also expects the present value of costs would be $200,000. How much is the present value of net benefits for the project?

  • $15,873
  • $34,467
  • $17,546
  • $38,000

Reference no: EM131153779

Questions Cloud

Pending issues in context of global crisis : Describe some achievements and pending issues in context of global crisis?
Decrease the gross domestic product measured : How can an increase in taxation decrease the gross domestic product measured?
Considering using a piece of park land : A county is considering using a piece of park land for one of two alternative recreation projects. Project A would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years.
Considering using a piece of park land : A county is considering using a piece of park land for one of two alternative recreation projects. Project A would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years.
Present value of net benefits for the project : An analyst predicts that the present value of benefits of a two-year project would be $220,000 and the present value of the scrap value at the end of the project's life is expected to be $18,000. Given a 5% discount rate, he also expects the prese..
Present value of total benefits for the project : If an analyst predicts that the benefits of a two-year project would be $100,000 in the middle of the first year and $110,000 in the middle of the second year, the scrap value at the end of the project's life is expected to be $20,000 upon resale,..
Explain rawls theory of justice : Explain Rawls's theory of justice and all its parts--including the purpose of the Original Position and the reasoning the leads to the two principles of justice. Be sure to state the two principles of justice.
Key differences between the two articles : summarize the key differences between the two articles and the perspectives they provide. Then take a stand. If you were required to lower inventory costs while still maintaining customer satisfaction, what would you do?
Think about common shopping behavior : Think about common shopping behavior and the differences between personal preferences. Some people shop daily for the items they need daily. This is, in fact, the common model still today in most of Europe and Asia.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Explain the concept of money neutrality

Explain the concept of money neutrality and draw two graphs, one AD/AS and one Money Demand/Money Supply. Illustrate money neutrality on your graphs.

  Question on international trade

Assume we decline to sell goods to any country that decrease or halted its exports to us. Who would profit and who would lose from such retaliation?

  Best level of output and price

In Bayonne, New Jersey, there is a large beauty salon and a number of smaller ones.  The total demand function for hair styling per day is Q=180-10P, where P is in dollars.

  Illustrate what most people do not realize is that

Illustrate what most people do not realize is that what the Fed is actually doing is changing money supply (and not interest rates directly). When money supply changes, interest rates automatically adjust to keep the money market in equilibrium.

  Say that c 15 08y i 4 g 1 let us say that the government

say that c 15 0.8y i 4 g 1. let us say that the government promotes thriftiness by giving a tax break to people who

  Explain how will unskilled workers adapt to a workplace

Explain how will unskilled workers adapt to a workplace requiring more skilled workers and fewer unskilled workers.

  Why a coffeehouse face a downward-sloping demand curve

while a dairy farmer has a horizontal demand curve? What other suppliers might face a downward-sloping demand curve and what implications does this have for their advertising budget as compared to suppliers with horizontal demand curves?

  Why prices rise when the quantity of money rises rapidly

Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B 1. a general technological advance 2. a technological advance in the consumer goods industries 3.a decrease in unemployment

  If this monopolist engages in first-degree price discriminat

A monopolist faces demand P=400-4Qd and has constant marginal cost MC=80. If this monopolist engages in first-degree price discrimination, what would consumer surplus be?

  What is the equation for the profit of each firm

If there are n firms in the industry, find expressions for the competitive equilibrium price and quantity. What is the equation for how much each firm produces? What is the equation for the profit of each firm? [Hint: Your answer should be 4 algebrai..

  Maximum profit for the producer

A producer in a perfectly competitive industry has a cost function described by TC(q)=1000+6q+0.2q^2. If the market price is 40 and it has already committed to paying the fixed cost, what is the maximum profit for the producer?

  What action does govt sometimes take to prevent a fall

(b) Provide an example of the interaction between each of these groups. (c) Sometimes a fourth group is included. What would that group be. Provide an example of the interaction between this and the groups listed in your answer to (a).

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