What interest rate is used in project-balance calculation

Assignment Help Econometrics
Reference no: EM13205267

Consider the following information for a typical investment project with a service life of five years:

n A B
0 -1,000 -1,000
1 200 -900
2 490 -500
3 550 0
4 -100 -100
5 200 90

What interest rate is used in the project-balance calculation

Reference no: EM13205267

Questions Cloud

What is the expected inflation rate in the united states : Suppose that the exchange rate adjusts so that interest-rate parity holds. Suppose also that the interest rate on a one-year German bond is 7% and the interest rate on a one-year U.S. bond is 4%. Suppose that you expect the exchange rate in one yea..
Neuroscience-cognitive-social-cultural : An integrated understanding of the explanations provided by the neuroscience, cognitive, social-cultural, and other perspectives in psychology is most clearly provided by
Did the dollar depreciate or appreciate against the pound : Based on the data in table 14.1, did the dollar depreciate or appreciate against the pound, the Canadian dollar, the france, the yen, and the mark between 1970 and 1980 Between 1980 and 1990 Between 1990 and 2000? Between 2000 and 2011
Professional full time legislatures and amateur : Discuss the meaning of "professional" full time legislatures and "amateur" or "citizen" part time legislatures.
What interest rate is used in project-balance calculation : Consider the following information for a typical investment project with a service life of five years: n A B 0 -1,000  -1,000 1 200 -900 2 490 -500 3 550 0 4 -100 -100 5 200 90 What interest rate is used in the project-balance calculation
What are the chance to lose cash or have it stolen : Using a spreadsheet program or a calculator, solve Tracy's problem of how often to go to the ATM when the norminal interest rate on her bank account is 10%, she spends $30 each day, it costs her $0.50 each time she uses the ATM.
Different primary election structures : Discuss and compare the different primary election structures. Be sure to include the role of runoff primary in some states.
Environs together are the undivided activity of the boat : When you ride in a boat, your body and mind and the environs together are the undivided activity of the boat.
Determine is the merger likely to be approved : The banking market in Athens, Ohio, currently has four banks with market shares of 60%, 20%, 15%, and 5%. The two smallest banks have proposed merging. Under the standard merger guidelines of the Federal Reserve and the Justice Department.

Reviews

Write a Review

Econometrics Questions & Answers

  Calculate the first and the twentieth annual payments

You enroll in a thrift plan in which you are allowed to contribute 8% of your pretax salary per year. The company contributes an additional 6%. Your starting salary is $62,500 and you can expect annual increases of 3.5%. Use an interest rate of 7...

  How much more will alexx have than spenser

Many retirement funds charge and administrative fee equal to 0.25% on managed assets. Suppose that Alexx and Spenser each invest $5,000 in the same stock this year. Alexx invests directly and earns 5% a year. Spenser uses a retirement fund and ear..

  Determine marginal tax rate for the extra compensation

Calculate your total tax liability under the 2013 federal income tax structure, assuming your income is $75,000. Assume you are single and using the personal exemption of $3,900 and the standard deduction of $6,100. Calculate your effectiv..

  Consequences in the regression results

The presence of autocorrelation leads to all of the following undesirable consequences in the regression results except:

  What is the sample standard deviation of weights

What is the sample standard deviation of weights and calculate the change in weight

  What is the quantity supplied and the quantity demanded

If the current price of the product is $150, what is the quantity supplied and the quantity demanded How would you describe this situation and what would you expect to happen in this Market

  Explain whether to expect average power per square of wind

Assume that current wind farms produce 2.5 W/m2. Succinctly explain whether you would expect the average power per square meter of wind farms to rise or fall as the production of wind energy expands to, say, 10% of our primary energy consumption...

  What is kathys total cost function before proposed change

Opportunity Costs. Two graduate business students are considering opening a full-service car wash in Greenville, North Carolina, after graduation. This is an alternative to employment with a local manufacturing firm where they would each earn $70,..

  Find the conditional probabilities

Suppose a random experiment can be represented by 2 sets of events ,Ai and Bj, with each pair of sub events (A1 and A2, and B1, and B2) being mutually exclusive and collectively exhaustive.

  How combined tax-transfer policy affect aggregate demand

Suppose the government decides to increase taxes by $30 billion in order to increase Social Security benefits by the same amount. How will this combined tax-transfer policy affect aggregate demand at current prices

  Illustrate an initial equilibrium for the consumer

Suppose a consumer has an income of $1000 and faces prices Px = $5 and Py = $10. (a). Write the equation for this consumer's budget constraint. (b). Draw the budget constraint, placing Good X on the horizontal axis. Label it BC.

  Is acme currently employing the optimal amount of capital

Acme Container Company produces egg containers that are sold to egg distributors using capital and labor. At Acme the marginal product of labor is: MPL=15 while the marginal product of capital is: MPK=10. Workers at Acme earn $10 hour (w=$10), whi..

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