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Calculate the net present value

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Reference no: EM132541817

1. Suppose that a monopolist firm has the following information

Q= 50-0.1P

TC= 25+10Q+0.5Q2

P=250- 2.5Q

A. Find the profit maximizing output

B. Find the profit maximizing price

2. Assume that a project requires an initial investment of Br. 60,000 and the rate of return is 10%. The after taxes cash flows (or net cash flows) are as follows:

Year 1 = 8000 Year 4 = 20,000

Year 2 = 15,000 Year 5 = 20,000

Year 3 = 22,000

A. Calculate the payback period (PBP)

Calculate the Net present value (NPV)

Reference no: EM132541817

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