Revenue returns for investment project

Assignment Help Macroeconomics
Reference no: EM131075967

The estimated revenue returns for Investment Project P are as follows:

£1,300,000 in year 1

£2,000,000 in each of the years 2 to 7

£0 in year 8 and subsequent years.

The repair and maintenance costs are expected to be £250,000 in each of the first seven years.

(a) Calculate, for Investment Project P, the:

(i) estimated revenue return net of repair and maintenance costs in year 1

(ii) total estimated revenue returns net of repair and maintenance costs for the first seven years

(iii) average estimated revenue returns net of repair and maintenance costs over the first seven years.

Reference no: EM131075967

Questions Cloud

Globalization of the early twenty-first : In Global Capitalism: Its Fall and Rise in the Twentieth Century, Frieden implicitly argues that the globalization of the early twenty-first century is not new in world history, reasoning that capitalism was previously "global" in the late ninetee..
Percentage of portfolio in asset portfolio expected return : Asset W has an expected return of 13.4 percent and a beta of 1.33. If the risk-free rate is 4.58 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "0" wherever required...
Create portfolio that has an expected return : You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 10.6 percent. Assume D has an expected return of 14.1 percent, F has an..
Determine how to improve communication : Utilize coaching, mentoring, and training to improve your own skill set and those of your employees. Explain how these initiatives may affect your current employment situations and help you improve future needs and expectations.
Revenue returns for investment project : The estimated revenue returns for Investment Project P are as follows: £1,300,000 in year 1 £2,000,000 in each of the years 2 to 7
What is the specific heat of silver : What is the specific heat of silver?
What is the convexity of bond and yield to maturity : Suppose that you’re given a 10-year 6.8%-coupon bond with $1,000 face value that pays the semi-annual coupon payments, the bond price in the market is $879 per bond, What is the yield to maturity? What is the idea of yield to maturity? What is the co..
Annual rate of depreciation : The book value of Factory Machine M is £580,000 at the end of year 1, and is £160,000 at the end of year 4. Calculate, for Factory Machine M, the:
Lean manufacturing environment impacts product development : this discussion assessment, you will explore how a lean manufacturing environment impacts product development, and material requirements plan (MRP).Explain how inventory affects product improvement, quality, prices, and the ability to respond quic..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Why do economists prefer real gdp as a measure of economic

If prices rise, people’s income from selling goods increases. However, the growth of real GDP ignores this gain. Given this information, why do economists prefer real GDP as a measure of economic well-being?

  Strategic plan and self-reflection summary

Review the initial scenario and the Strategic Business Plan presented in Module 1 to make sure that the requirements of the Board and the Part II Strategic Plan are met.

  Compute the four-firm concentration ratio

Compute the four-firm concentration ratio (CR4) and the Herfindhal-Hirchman index (HHI) for this industry. What is your conclusion regarding the market structure of the industry?

  What was the result of the kenedy tax cut of 1964

What was the result of the Kenedy tax cut of 1964? I believe it is that the unemployment rate decreased and the economic growth rate increased, yet I see sometimes where it states that unemployment increased

  What would happen to aggregate income

Use the Mundell-Fleming model to predict what would happen to aggregate income, the exchange rate, interest rate and the trade balance of a small open economy under both floating and fixed exchange rate regimes in response

  1 why have economic analyses of clinical and administrative

1. why have economic analyses of clinical and administrative innovations become more important?2. a clinic finds that

  Illustrate what is the price elasticity of demand faced

Show the first and second order condition for profit maximization. Illustrate what is the price elasticity of demand faced by this monopolist.

  How us deficit have effect on future medicare users

what happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the U.S. businesses and consumers involved?

  An electric company must decide whether to install a

an electric company must decide whether to install a scrubber to reduce sulfur dioxide emissions from its electric

  Define you that the report will be handed out to the staff

He define you that the report will be handed out to the staff prior to the staff meeting next week and that it should outline the various forms of market structure.

  Explain the pattern of the marginal product of labor

What output level would the firms short run and long run average costs be the same - Explain the pattern of the marginal product of labor.

  What are the long-run implications of fdi

the Cobb-Douglas production function given in equation 4-1 applies to a developing country. Instead of thinking of immigration from a developing to a developed country, suppose a developed country invests large amounts of capital (foreign direct i..

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