### What is the capitalized worth per year starting in year one

Assignment Help Econometrics
##### Reference no: EM13241456

1) In a proper comparison of alternatives 1 and 2, with an MARR of 10%, what would be the present worth of alternative 1?

End of year Alternative 1 Alternative 2
0 -\$40,000 -\$50,000
1 \$12,000 \$10,000
2 \$12,000 \$10,000
3 \$12,000 \$10,000
4 \$36,000 \$10,000
5 \$10,000
6 \$10,000
7 \$10,000
8 \$50,000

2) what is the capitalized worth, at i=10%, of \$1,500 per year starting in year one and continuing forever, and \$10,000 in year five, repeating every four years thereafter, and continuing ad infinitum (i.e. forever )?

3) The exploration for oil on the continental shelf by a small, independent drilling company will produce the following cash flow: a \$520,000 investment now, \$200,000 in annual income in years 1 through 10, and a \$1,500,000 dismantling cost at end-of-year 10. If the company's reinvestment rate of 20%, than what would be the company's external rate of return on this project?

#### Questions Cloud

 Find the average power performed by the crane : A crane at a construction site lifts a concrete block with a mass of 440 kg from the ground to the top of a building with a height of 15.0 m, If the duration of the lift was 3.00 minutes, then what was the average power performed by the crane Write down the payoff matrix and find all nash equilibrium : One unit of object is going to be sold via auction. There are two bidders, A and B. Their willingness to pay are known to be either of 10,20,30,40,50 and bids are also restricted to those values. Define what is the ph of the solution after the addition : If 25.00 mL of 0.200 M HCl is titrated with 0.200 M NaOH, what is the pH of the solution after the addition of 22.50 mL of NaOH How much work did the person do : In the Biomedical and Physical Sciences building at MSU there are 127 steps from the ground floor to the sixth floor. How much work did the person do What is the capitalized worth per year starting in year one : what is the capitalized worth, at i=10%, of \$1,500 per year starting in year one and continuing forever, and \$10,000 in year five, repeating every four years thereafter, and continuing ad infinitum (i.e. forever ) Explain what volume of a concentrated solution of naoh : What volume (mL) of a concentrated solution of NaOH (6.00 M) must be diluted to 200. mL to make a 0.88 M NaOH solution What proportion of municipal bonds is issued : What proportion of municipal bonds is issued by suburbs and What is the probability that a randomly selected visit will last between 60 and 90 minutes? The parable of the talents from the book of matthew : A question of Money ! To an economist, money is merely a medium of exchange. To some people, however, money is a God; and to others, money is evil. But in the Scriptures of the New Testament, Jesus teaches us about money. What do you learn about mone.. Which has subsidized the production of cheap and nutritional : Corporations such as McDonalds may be partially responsible for health issues such as obesity, but how much of the responsibility goes to the US Dept. of Agriculture, which has subsidized the production of cheap and nutritionally empty foods

### Write a Review

#### Determine comsumption and savings of maria in period

Maria decides to switch a major and is now a student in business. in period 2, she will have a BA in business and her income will be \$88000. determine Maria's lifetime wealth. determine consumption and sacving of maria in period 1 and period 2.

#### How many units will the consumer buy in jail

Suppose the individual demand for a product is given by QD = 1000 - 5p. Marginal revenues is MR = 200 - 0.4Q, and marginal cost is constant at \$20 there are no fixed cost. A. The firm is considering a quantity discount. The first 400 units can be ..

#### Determine the sum of all values of function over the range

A probability density function shows the probability for each value of X.The variance of X must be non-negative; the variance of Y must be non-negative; hence the covariance of X and Y must be non-negative _If X is a uniformly distributed random v..

#### Determine what should the price of stock be

last week home depot was selling at \$33.30. the earnings per share are projected to be \$2.44 this year. if the required rate of return is 14% and dividend growth is constant at 5%, what should the price of stock be

#### Find the best response function for each firm

Consider the short-run situation of a market with three identical firms producing homogeneous outputs. Each firm's total cost function is C(q) = (1/2)q2, where q 0 is a possible output. Market demand is given by Q(p) = 2-2P

#### Discuss the current us federal budget

Discuss the current United States Federal Budget and what are the major categories of expenditures? What has changed since 2005? Explain your reasoning.

#### Indicate how much luxembourg imports a good

Luxembourg imports a good at a world price of \$10 each. The domestic supply curve is S = 50 +5P where P is in Ecu and 1 Ecu = \$1. Demand curve is D=400-10P. Draw demand and supply curves for this good and indicate how much it is imported

#### How would you prefer to travel to work at a wage rate

Will you change your preferred mode of transportation if your wage rate rises to \$20 per hour. Assume you work five days a week and time spent riding on a bus or driving a car does not directly enter your utility.

#### How might you construct measure of the change in price level

Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: fish, fruit, and meat. Suppose that on January 1, 2007, fish sold for \$2.50 per pound, meat was \$3.00 per pound, and fruit was \$1.50 per ..

#### Find how much is the economic life of the equipment

Special equipment can be designed and built for \$80,000. This equipment will have a salvage value of \$70,000 in year 1, which will decrease b y \$10,000 through year 8. Operation and maintenance costs will start at \$18,000 in year 1

#### Determine the interest rate compounded semiannually

every 6 months until he retires so that, beginning one year after his retirement, he will receive \$30,000 for the next 15 years. Find the value of (A) which he should deposit every 6 months. Assume the interest rate is 8% compounded semiannually.

#### Explain how gm viewed its marginal revenue product

In 2009 General Motors (GM) announced that it would reduce employement by 21,000 workers. What does this decision reveal about how GM viewed its marginal revenue product (MRP) and marginal resource cost (MRC)