Project is estimated to require an investment

Assignment Help Business Economics
Reference no: EM13834798

A project is estimated to require an investment of $25,000, have a life of 5 years and 0 salvage value and have an annual net cash flow that can be described by a symmetric triangular distribution with a = $5,000, and b = $12,000. If the minimum required rate of return is 15%. Using Excel, perform a Monte Carlo simulation for 100 observations and construct the distribution of the net PW. Calculate the E(PW) and the V(PW).

Reference no: EM13834798

Questions Cloud

Find the average products of capital-labor and materials : Suppose you are given the following Total Product Function: Q=100 K^3/2 L^4/2 M^4/7 ,where Q is total output or units produces; K, capital; L, labor; and M, materials.; that is, this is a input factor production function. Find the Average products of..
Find and interpret the output elasticity : Suppose you are given the following Total Product Function: Q=100 K^3/2 L^4/2 M^4/7, where Q is total output or units produces; K, capital; L, labor; and M, materials. That is this is an input factor production function. Find and interpret the output..
What revenues and profits for each firm and for merged firm : Two physical therapy firms want to merge. The price elasticity of demand for physical therapy is -0.40. Firm A has a volume of 10,400, fixed costs of $50,000, marginal costs of $20, and a market share of 8%. What are the total costs, prices, revenues..
Economic growth and international trade increase consumption : Explain the advantages of specialization and trade in international economics. Explain how economic growth and international trade increase consumption possibilities.
Project is estimated to require an investment : A project is estimated to require an investment of $25,000, have a life of 5 years and 0 salvage value and have an annual net cash flow that can be described by a symmetric triangular distribution with a = $5,000, and b = $12,000. If the minimum requ..
Prescription medications : Critically analyze the pros and cons of putting a price ceiling on prescription medicine. Make sure to use concepts from the chapter in this unit such as government intervention, inefficiencies, price elasticity, etc. In the first case, assume the me..
Affect the market clearing price and quantity in each market : Discuss how each of the following will affect the market clearing price and quantity in each market. Discuss how the supply and /or demand curves will shift in the following cases (if at all) Incomes rise and the good is a normal goods.
Describe the pros and cons of the oligopolistic firms : Big pharmaceutical companies are oligopolies and as such their strategic decisions are influenced by the rival's actions. Describe the pros and cons of the oligopolistic firms in the healthcare sectors
Changes in quantity of money lead to real changes in economy : Changes in the quantity of money lead to real changes in the economy. If this is the case, why would the central bank ever stop increasing the money supply?

Reviews

Write a Review

Business Economics Questions & Answers

  Q recall that is the economy continues to be strong abc

q. recall that is the economy continues to be strong abc company may need to increase its production by about 50

  How does imposing rent controls affect the number of housing

How does imposing rent controls affect the number of housing units available to low-income families? Illustrate your response using graphs.

  Sells a product differentiated from that of its competitors

For each of the following characteristics, say whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither. sells a product differentiated from that of its competitors. has marginal revenue less than price

  When external costs are present

When external costs are present

  The economy is operating beyond

The economy is operating beyond the full employment output level, thus producing rapid rise in prices of goods and services. The Fed is concerned about high inflation rates. The curb inflation, the Fed shifts to a more restrictive monetary policy by ..

  Along unit elastic demand curve-market price increase

along a unit elastic demand curve, if the market price increases then. a good economic model should. if two goods are substitutes, their corss-price elasticity will be. for a straight line demand curve, price elasticity of demand near the "choke pric..

  Consider a market where demand is p10-2q and supply is pq2

consider a market where demand is p10-2q and supply is pq2. there is a consumption positive externality of 2.5unit of

  Actual inflation exceeds anticipated inflation

If actual inflation exceeds anticipated inflation, who will lose purchasing power, and who will gain? How does unanticipated inflation harm the country? As part of your answer, include how you and your employer would both be affected.

  Honda accord owners are fiercely loyal to their auto choice

honda accord owners are fiercely loyal to their auto choice. while interviewed by representatives of honda number one

  Tax be defensible in spite of the deadweight loss

Calculate the deadweight loss from the tax. Elucidate the tax be defensible in spite of the deadweight loss.

  How many gallons of gasoline are sold in the market

The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local market to sell gasoline to consumers. Hull and Inverted V are located across the street from one another and can observe the prices posted

  Savings deposits including money market deposit accounts

Illustrate what is M1 in Iron mania. Illustrate what is M2 in iron mania.

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