Reference no: EM13815508
1-Calculate the present worth of the equipment described in question 4 given a 10% discount rate.
2- An entrepreneur has found a way to turn straw into gold, but he needs $5 million to create the necessary machinery. He wants to earn a 25% rate of return per year and recover the investment in 5 years. How much profit must the machines make every year to accomplish his goal?
3-A designer decides to add an additional generation facility to an existing power plant, which costs $4 million. Given an internal rate of return of 7% over a time span of 20 years, how much extra revenue does the new system provide the power plant each year based on annual compounding?
4-You've won a lottery with two options for receiving your prize. One option is to receive $5 million per year for 40 years with an interest rate of 3%. The other option is to receive $222 million upfront. Ignoring taxes, what will result in you receiving the most money?
5- Your friends want to start a landscaping service for 3 months next summer, but need to buy a truck to haul around your equipment. You found a used one for $5,000, but you can make $1,500 per month. At the end of the summer you have a buyer who will pay $1,000 for the beat up truck (salvage value). Over the 3 months the truck has a discount rate of 2%. Draw a cash flow diagram representing this scenario, then explain how much money this venture will either gain or lose.
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Strong supporter of free trade-international trade policy
: If you were a strong supporter of free trade and in charge of U.S. international trade policy, would you cut tariffs and quotas, or would you negotiate with the nation's trading partners, maintaining trade barriers unless they lowered theirs also? Di..
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Distort trade according to comparative advantage
: A subsidy on exports is, in a sense, the opposite of a tariff on imports. If a tariff lowers efficiency, would you expect a subsidy to increase efficiency or lower it? How do tariffs and subsidies compare in the way they distort trade according to co..
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What is the present worth of the planned expenditures
: A construction company in Kurdistan expects to spend $4,000 two years later, $8,000 three years from now, and $6,250 six years from now. What is the present worth of the planned expenditures if the interest rate remains 11.8% per year? Use standard n..
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What is the equivalent annual worth of this bonus
: A supermarket wants to allocate 1.75% as bounce to reward the hardworking employees from the total that will be made annually. The sales are expected to be $250,180 in the first year and $262,180 in the second year. The amount increases each year by ..
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Calculate the present worth of the equipment
: Calculate the present worth of the equipment described in question 4 given a 10% discount rate. An entrepreneur has found a way to turn straw into gold, but he needs $5 million to create the necessary machinery. He wants to earn a 25% rate of return ..
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What about in a country with a growing tax base
: Would a dynamic approach to taxation be more likely to lead to economic growth than the static approach in a country with a falling tax base? What about in a country with a growing tax base?
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Savings and investment necessary for economic growth
: As a means for less developed countries to attract the savings and investment necessary for economic growth and development, is short-term portfolio investment better than Foreign Direct Investment? Explain.
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International trade increases prices-employment
: If international trade increases prices, employment, and wages among more competitive and efficient producers but has the opposite effects among less competitive and efficient producers, why should anyone listen to opponents of international trade? E..
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For rice production
: For rice production, why might labor productivity among workers in some southeast Asian countries be lower than labor productivity in Arkansas (Note: Arkansas exports the 4th largest amount of rice in the world).
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