Calculate the pw of the revenue stream

Assignment Help Microeconomics
Reference no: EM132168945

Question: Due to competition from a new plastic, revenues for the mainstay product of Toys-R-Plastic are declining at 5% per year. Revenues will be $2M for this year. The product will be discontinued at the end of year 6. If the firm's interest rate is 10%, calculate the PW of the revenue stream.

Reference no: EM132168945

Questions Cloud

Description of the role of a business entrepreneur : Provide a comprehensive description of the role of a "business entrepreneur" in achieving the success of a business.
Would you replace the old machines today with the new one : You are considering the purchase of a new high-efficiency machine to replace older machines now. The new machine can replace four of the older machines.
What is cafe creations : Last year Café Creations, Inc. had an ROA of 25 percent, a profit margin of 12 percent, and sales of $4 million. What is Café Creations' total assets?
What is the power of this test if the true mean : What is the power of this test if the true mean is µ = 3.42? (Round your Z-value to 3 decimal places and final answer to 4 decimal places.)
Calculate the pw of the revenue stream : Due to competition from a new plastic, revenues for the mainstay product of Toys-R-Plastic are declining at 5% per year. Revenues will be $2M for this year.
Qualified profit sharing plans : Discuss similarities and differences between Section 401(k) plans and other qualified profit sharing plans.
Find real or differential inflation rate of salary increases : Assume your salary is $35,000 in 1995 and $60,000 in 2035. If inflation has averaged 2% per year, what is the real or differential inflation rate.
What was the capital gain of the tips in dollars : What was the capital gain of the TIPS in dollars? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
What has been the average yearly rate of appreciation : In the 1920 Sears Roebuck catalog, an oak chest of drawers costs $8 plus freight. In 1990, this same chest of drawers, in good condition, is $1200.

Reviews

Write a Review

Microeconomics Questions & Answers

  What does it mean to say that a stock is overvalued

Jay Ritter, a professor at the University of Florida, was quoted in the Wall Street Journal as saying about Facebook: "It's entirely possible for a company to have solid growth prospects while its stock is overvalued." What does it mean to say tha..

  Show what the effect would be in the short run

Classify each of the following as a supply or demand shock. Use a graph to show the effects on inflation and output in the short run and the long run - show what the effect would be in the short run. Describe the effects on inflation and output.

  Explore four key points of a relevant economic article

Identify at least four key points of a relevant economic article from either the Strayer Library or a newspaper. The article must deal with any course concepts covered in Weeks 1-8.

  What is meant by a country specialising in the production

What is meant by a country specialising in the production of a good? Is it typical for countries to be completely specialised? Explain

  What happens to the reserves of the bank

What happens to the reserves of the bank? What happens to the money supply in the economy as a whole if the reserve requirement is 10%, all payments are made by check, and there is no net drain into currency? How would your answer in part b be aff..

  Price increase as opposed to computing a price decrease

What method (formula) for computing price elasticity of demand gives you two dissimilar calculations when computing a price increase as opposed to computing a price decrease? Describe briefly.

  How many dvd should it order from which supplier

How many DVDs should it order - From which supplier? The station should technically speaking purchase from supplier A because it is best for the company and saves money.

  Explain math and science tutoring services

If the Online Tutoring decides to sell its tutoring services individually, what should it charge for math tutoring? What should it charge for science tutoring?

  Why does not the us just restrict all goods coming in from

assume that you have been appointed as the speaker of the house. you must deliver a speech about the current state of

  Flowing between the system and surroundings

According to the first law of thermodynamics, the energy of the universe is constant. Does this mean that ?E is always equal to zero?

  What reasons would you convey to the vice-president

As finance manager, what reasons would you convey to the vice-president in recommending this forecasting model?

  Which would you expect to have a low level of economic rent

Which of the following individuals would you expect to have a high level of economic rent, and which would you expect to have a low level of economic rent? Explain why for each.

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