### Present value of total benefits for the project

Assignment Help Macroeconomics
##### Reference no: EM131153778

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, and the discount rate is 5%, how much is the present value of total benefits for the project?

• \$217,968
• \$213,152
• \$230,000
• \$219,827

#### Questions Cloud

 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. Building blocks of market competitive pay system : Discuss the basic building blocks of a market competitive pay system, including the relationship between internal and external equity.

### Write a Review

#### What would determine whether a student would choose to be

Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate r. What would determine whether a student would choose to be a lender or a borrower in this market?

#### Compute marginal physical product of labor schedule

Use the following information for a company's output at various levels of employment (L) to compute:

#### What can the fed do to combat inflation what can the fed

What can the Fed do to combat inflation? What can the Fed do to combat recession? How specifically does the Fed make these changes (mechanics)?

#### Various costs and change in costs

Point out how each of the following would shift the 1) average-variable-cost curve, 2) average-fixed-cost curve, and 3) average-total-cost curve. Mention two types of businesses that their costs are mostly variable costs, and list 2 types of busin..

#### Find the terminal velocity and the relaxation time

Find the terminal velocity and the relaxation time Tr (the characteristic time required to reach approximately the terminal velocity) for both cases of light and heavy particle.

#### Elucidate the factors which contribute to the elasticity

Elucidate the factors which contribute to the elasticity of goods. Descriobe how these factors influence consumers to purchases goods or services.

#### Determine five key strategies a sales manager

Determine five key strategies a sales manager would need to show a meeting, convention, or exposition organizer during a FAM trip to close the sale.During busy times of the year, a hotel, convention center, or meeting hall may have more demand tha..

#### Adjusted gross income by entering the following information

Compute Pierre Lappin’s adjusted gross income by entering the following information on Form 1040: \$50,000 salary, \$5,000 qualified dividend income, \$3,000 interest income from corporate bonds

#### What is the major difference between a tariff and a quota

What is the major difference between a tariff and a quota? If you were the government, which one would you do when looking at imports?

#### Effect of shocks on long run

Suppose that deterioration in the education level of the U.S. population reduces the marginal product of labor.

#### Find the three stages of production

Calculate the marginal product of labor, at what point does diminishing returns set in, calculate the average product of labor and find the three stages of production

#### Government pay for the new spending

Suppose MPC=0.75 and the government pay for the new spending of 100,000 by increasing taxes by 100,000. Calculate the new Y. Could you provide the answer with specific formulas if possible?