Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The Charlotte Bobcats, a professional basketball team, has been offered the opportunity to purchase the contract of an aging superstar basketball player from another team. The general manager of the Bobcats wants to analyze the offer as a capital budgeting problem. The Bobcats would have to pay the other team $800,000 to obtain the superstar. Being somewhat old, the basketball player is expected to be able to play for only four more years. The general manager figures that attendance, and hence revenues, would increase substantially if the Bobcats obtained the superstar. He estimates that incremental returns (additional ticket revenues less the superstar's salary) would be as follows over the four-year period:
YEAR
INCREMENTAL RETURNS
1
$450,000
2
350,000
3
275,000
4
200,000
The general manager has been told by the owners of the team that any capital expenditures must yield at least 12 percent after taxes. The firm's (marginal) income tax rate is 40 percent. Furthermore, a check of the tax regulations indicates that the team can depreciate the $800,000 initial expenditure over the four-year period.
a) Calculate the internal rate of return and the net present value to determine the desirability of this investment.
b) Should the Bobcats sign the superstar?
In imperfect competition, labour markets can lead to worker exploitation in terms of their wage rates they receive compared with wage rates in perfect competition. Discuss this opinion.
Show how to generate a supply and demand function from a information table that includes the supply and demand information for two different price levels.
Neither one buys anything and one buys nothing, one buys the bundle - Draw on the reservation prices provided in Question 6 and assume mixed bundling.
The Kingdom of the North and the Iron Islands produce 2 goods
sometimes market activities production buying and selling have unintended positive or negative effects outside the
Suppose a consumer’s preferences can be represented by the utility function U(X,Y) = Min (2X,Y). Also, suppose the consumer has $300 to spend and the price of Good X is PX = $3 and the price of Good Y is PY = $1.
how can we measure the opportunity cost of producing a good? using a bowed outward production possibilities curve
what happens to the indifference curves when a households income is reduced?questionwhat is a budget constraint? how
Suppose you're a city planner working on new industrial park and contemplating the use of industrial ecosystem. Describe the major advantages and disadvantages of industrial ecosystem which you would consider in making your decision.
after two quarters of increasing levels of production the ceo of canadian fabrication amp design was upset to learn
the british phonographic recordingindustry is comprised of record labels that produce promote and distribute recorded
1. craft unionsboth industrial unions and craft unions attempt to raise their members wages but each goes about it
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd