What is the future worth of the investment

Assignment Help Econometrics
Reference no: EM13224996

Boilermaker Brew Plc. and Hoosier Brewing Co. plan to combine their U.S. operations in an attempt to bolster their sagging sales in a tough domestic market. The two companies will form a new unit called HoosierMaker. The companies expect to invest $120 million upfront to set up the new unit. HoosierMaker expects to garner revenue of $9.5 million each year and spend $1.3 million a year in costs, over the next 7 years. What is the future worth of this investment if the companies' rate of return is 16% per year?

Reference no: EM13224996

Questions Cloud

What is the equivilent annual cost for keeping the computer : The local computer shop will sell her a new system for $4000, inlcluding the new graphic software that she wanted, although, she can cope with the software that she currently owns. Her own comptuer will last 2 more years, and will then have a salv..
State a titration is performed by adding koh : A titration is performed by adding 0.400 M KOH to 40.0 mL of 0.300 M HCl. What is the pH after addition of 20.0 mL of the base
What is the expected npv for the new machine : R&D planning. A firm is in the process of assessing the economic prospects for a new bottling machine it is developing. Future research and development expenses could range from $4 to $9 million, with a most likley value around 7$ million.
Overall effectiveness of a companys supply chain : Overall effectiveness of a companys supply chain - optimize the delivery of goods, services, and information from supplier to customer, balancing supply and demand
What is the future worth of the investment : The companies expect to invest $120 million upfront to set up the new unit. HoosierMaker expects to garner revenue of $9.5 million each year and spend $1.3 million a year in costs, over the next 7 years. What is the future worth of this investment..
Explain what is the ph after addition of the base : A titration is performed by adding 0.400 M KOH to 40.0 mL of 0.300 M HCl. What is the pH after addition of 5.0 mL of the base?
How to bring the economy back to full-unemployment : The unemployment rate is the US fluctuated around 6% in 2002-2003 . Assume the full- unemployment rate is 5%  What could the Fed do in 2002-2003 in order to bring the economy back to full-unemployment What did the Fed actually do
Explain a brick consisting of pure metal measures : A brick consisting of pure metal measures 4.00 inches x 5.00 inches x 3.00 inches and weighs 7.020 kg. Using density, identify the metal in the brick.
Explain the shapes of your indifference and isoprofit curves : Use indifference curves and isoprofits for wages and job risk to present one possible reason for this difference in annual salaries. You must explain the shapes of your indifference curves and isoprofit curves to receive full credit.

Reviews

Write a Review

Econometrics Questions & Answers

  How much utility will the marginal dollar yield

ADVANCED ANALYSIS Let MUA = z = 10 - x and MUB = z = 21 - 2y, where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and ..

  Describe their pricing practices

Describe the fundamental difference between short-run analysis and long-run analysis of the cost structure of a firm and give at least two examples of industries that practice price discrimination, and describe their pricing practices.

  What is the opportunity cost of increasing annual output

Obviously, given their limited resources and available technology, as they use more of their resources for corn production, there are fewer resources available for breeding poultry. Maximum annual output options Quantity of Corn(pounds) Quantity o..

  What is his probability of winning at least twice

suppose that a gambler plays a $1 game 7 times. in each game, his probability of winning is 20 percent. if he wins, he gets $4 prize. he gets nothing if he loses. to profit on the games, he must win at least twice. what is his probability of winni..

  What is the amount of her unrecaptured sec 1250 gain

An uninsured pony with an adjusted basis of $20,000 and FMV of $35,000, which her daughter uses only for personal use, is injured while attempting a jump. Because of the injury, the uninsured pony has to be destroyed by a veterinarian.

  How should toyota market itself to regain consumer trust

oyota's announcements at the beginning of 2010, however, suggested that the real culprit was a defective gas pedal. This resulted in many calls for an investigation, as the initial claim about the carpeting was seen as apparent camouflage for a more ..

  Determine the output level that minimizes short-run average

(A pence was a British monetary unit equal, at that time, to 2 cents U.S.). Q = output, measured in millions of kWh per year Z = plant size, measured in thousands of kilowatts C. Holding plant size equal to 150,000 kilowatts

  What amount would be available for capital replacements

The first operating expense was in July 2005, and the first replacement expense is in July 2009. If all money earns interest at 5% after the time of endowment, what amount would be available for capital replacements at the end of every fifth year ..

  Compute interest which abc company received from investment

The ABC Company deposited $100 000 in a bank account on June 15 and withdrew a total of $115 000 exactly one year later. Compute: (a) the interest which the ABC Company received from the $100 000 investment, and (b) the annual interest rate which ..

  What is the elasticity of demand

Suppose the daily demand for coffee in Seattle is Q^d = 100,000(3-P)^2 A. What is the elasticity of demand at a price of $2 B. At what price would the total expenditure on coffee be the largest?

  Why the variances in the populations are equal

Further, the standard deviation for children under 12 was 51.7, while the standard deviation for children 13 to 17 of age was 67.6. Assuming that the variances in the populations are equal, is there a difference in the mean cell phone usage betwee..

  Explain the compounding scheme used by the bank

A local bank advertised the following information: interest 6.89% - effective annual yield 7.128% . no mention was made of the interest period on the advertisement. Can you figure out the compounding scheme used by the bank

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