An analyst predicts that the present value of benefits

Assignment Help Business Economics
Reference no: EM131159457

An analyst predicts that the present value of benefits of a two-year project would be $220,000 and the present value of the scrap value at the end of the project’s life is expected to be $18,000. Given a 5% discount rate, he also expects the present value of costs would be $200,000. How much is the present value of net benefits for the project?

Reference no: EM131159457

Questions Cloud

Government issues a bond with a face value : US government issues a bond with a face value of $5,000 and a nominal rate of 5% per year payable semiannually. The bond has a maturity date of 20 years. If you want to earn nominal 20% minimum rate return (MARR) per year compounded semiannually, how..
Differentiate the monetary policy and fiscal policy : Differentiate the Monetary Policy (MP) and Fiscal Policy (FP)? What are the tools of Monetary and Fiscal Policies? Keeping in view these tools, how the government can use both policies to correct inflation and unemployment problems in the economy? ( ..
How much is the present value of total costs for the project : A county is considering building a temporary road to cut travel time during the two years it will take to build a permanent highway. The temporary road can be put up in the beginning of the project at a cost of $900,000. Total maintenance cost of the..
Actual unemployment rate and natural rate of unemployment : What is the difference between actual unemployment rate and natural rate of unemployment? In an economy, 5% of the employed workers lose their jobs and 20% of unemployed workers find jobs during the FY 2015. Calculate the natural rate of unemployment..
An analyst predicts that the present value of benefits : An analyst predicts that the present value of benefits of a two-year project would be $220,000 and the present value of the scrap value at the end of the project’s life is expected to be $18,000. Given a 5% discount rate, he also expects the present ..
Park land for one of two alternative recreation projects : A county is considering using a piece of park land for one of two alternative recreation projects. Project A would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years. If these figures are i..
Find approximate dollar-weighted annual yield : On February 1. Arshak's investment account has a balance of $19,800. He deposited $1,100 on April 1 and $2,600 on May 1. He withdrew $8.300 on July 1. On November 1, Ubalds balance was $14,820. Find Arshak's approximate dollar-weighted annual yield f..
How much is the present value of total benefits for project : If an analyst predicts that the benefits of a two-year project would be $105,000 at the end of the first year and $110,000 at the end of the project life, the scrap value of the project is expected to be $20,000 upon resale, and the discount rate is ..
Calculate money supply using simplified definition method : The questions on this homework deal with an economy called Economica. Calculate the money supply (M1) using the "simplified definition method." Assume the information given here is the only relevant information. Carefully follow all numeric instructi..

Reviews

Write a Review

Business Economics Questions & Answers

  Factors turned the budget surplus into a deficit

Which of the following factors turned the budget surplus into a deficit in 2002?

  Q1 your employer asks you to calculate the present value

q1. your employer asks you to calculate the present value for a project that will result in an immediate financial

  What are equilibrium price and quantity-consumer surplus

Assume the nation of Australia is "small" and thus unable to influence world price. Its demand and supply schedules for TV sets are shown in Table 4.13.Using graph paper, plot the demand and supply schedules on the same graph. What are the equilibriu..

  Determine monopolist profit maximizing price and toal output

Demand for microprocessors is given through P=35-5Q, where Q is the quantity of mircochips. The typical company total cost of manufacturing chips is Ci=5qi, where qi is the output of company i.

  Consider an individual earning 1000 per month who also

consider an individual earning 1000 per month who also receives 100 per month in food stamps they can only be exchanged

  What is the probability of selecting customer who is single

A bank has the following data on the gender and marital status of 400 customers. An experiment consists of selecting one of these customers at random. What is the probability of selecting a customer who is single? What is the probability of selecting..

  Explain how does this complicate the agency problem

Can goals like avoiding unethical or illegal behavior be in conflict with the goal of the firm. Explain how does this complicate the agency problem.

  In an oligopoly game-incentive to cheat is reduced

In an oligopoly game, the incentive to cheat is reduced when:

  Expected rate of increase in housing prices rises

If mortgage rates rise from 5% to 10% but the expected rate of increase in housing prices rises from 2% to 9% , are people more or less to buy houses. IRs was lower in the mid-1980s than in the late 1970s, yet many economists have commented that real..

  Evaluate role of banks in implementation of monetary policy

Explain how the members of the Board of Governors, members of the Federal Open Market Committee, and the directors of the 12 Federal Reserve Banks are selected. Describe and evaluate the role of banks in the implementation of monetary policy.

  Consider the market for vegan soup

Consider the market for vegan soup, where two firms, Kibble and Flesh Not, are in Stackelberg competition. Flesh Not observes Kibble's output level before choosing its desired output level. The market inverse demand curve for vegan soup is P: 18 - Q,..

  Consumer surplus at any specific quantity

Consumer surplus at any specific quantity is measured as the_________ distance between the demand curve and the level of the market clearing _______

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