Find the level of b required to make the program a success

Assignment Help Financial Management

Reference no: EM132032431

A training program costs $100 per participant in year zero and nothing thereafter.

It generates benefits of B per year beginning in year one. These benefits decline by 0.2B each year, so that in the sixth year they are zero.

All wages and prices rise by 5A%each year, and the nominal discount rate is 7%. (Or assume and use a real discount rate of 2%.]

Find the level of B required to make the program a success. Within your $ value of B, discuss the possible quantity impact implied and the likely shadow price.

Reference no: EM132032431

Questions Cloud

What is the breakeven quantity : If total fixed costs are $10,000, variable costs per unit are $5, and the price per unit is $15, what is the breakeven quantity?

List eight elements of the total cost of ownership : List eight elements of the Total Cost of Ownership for computer hardware and software.

What is the original import price in british pounds : The base platform for the Toyota Tundra truck line is 1, 650.000. The spot rate of the Japanese yen against the British pound is 197/pound.

Calculate the incremental irr : The town of Drygulch has been flooding once per year for the last twenty years. Folks have pretty much accepted the damages it causes.

Find the level of b required to make the program a success : It generates benefits of B per year beginning in year one. These benefits decline by 0.2B each year, so that in the sixth year they are zero.

What is the companys wacc : The yield to maturity on the bonds is 5%, and the firm's tax rate is 40%. What is the company's WACC?

What about the ife : What about the IFE? Would the IFE be more likely to hold between the two countries? Explain.

Calculate the variance of a portfolio consisting toyota : Using these data, calculate the variance of a portfolio consisting of 50% Toyota and 50% Honda.

How does this change the price of the tundra to toyota : The spot rate of the Japanese yen against the British pound has recently moved from ¥195/ £ to ¥190 / £.

User Account

All Pages