Investment produce for the purchaser

Assignment Help Business Economics
Reference no: EM131806358

A mine is for sale for $240,000. It is believed the mine will produce a profit of $65,000 the first year, but the profit will decline $5000 a year after that, eventually reaching zero, whereupon the mine will be worthless. What rate of return would this $240,000 investment produce for the purchaser of the mine?

Reference no: EM131806358

Questions Cloud

Calculate the cash collections from sales for the month : Calculate the cash collections from sales for the month of February
Describe three key changes that have advanced hr : Based on the assigned chapters this week, Describe three key changes that have advanced HR and provide a justification to support your selection.
What rate of return did she receive on her investment : At the end of 4 years, she sold the lot for a net value of $15,000. What rate of return did she receive on her investment?
Consider the production process for manufacturing widgets : Consider the production process for manufacturing widgets. How many units should you start with to get a yield of 1000 units?
Investment produce for the purchaser : What rate of return would this $240,000 investment produce for the purchaser of the mine?
Show how much the winners receive : The New England Patriots are currently a 9.5 point favorite over the New York Jets in their upcoming match this weekend.
Compute the gross margin for mason company : Compute the gross margin for Mason Company using the following cost flow assumptions
What is the annual net cash cost of borrowing : If a corporation issued $4,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%
What is the internal rate of return : (a) What is the internal rate of return for this investment? (b) Should this investment be accepted if the other options have a rate of return of 12%?

Reviews

Write a Review

Business Economics Questions & Answers

  Supply and demand within the health care market

Consider and discuss how managed care has affected supply and demand within the health care market, from the viewpoint of patients and health care organizations.

  According to the rational choice model

According to the rational choice model, cash grants are preferred to food stamps because A. They enhance consumer choice B. Cash grants allow consumers to reach lower indifference curves C. Food is the most essential commodity D. Food would be cheape..

  Examples of specific marketing attempts targeted

Marketers of entrenched brands like Nike, Pepsi, and Levi Strauss are tearing their hair out over Gen Y consumers. Image-building campaigns (e.g., 50 Cent endorsing Reebok) are not as effective as they once were. What advice would you give to a marke..

  Explain hhow many tickets would it sell

Explain how many tickets would the team be able to sell (ignoring capacity constraints) if it behaved competitively and set p = MC. Explain hHow many tickets would it sell -and at what price - if it behaved like a monopoly.

  Illustrate what is maximum amount would be willing to pay

Illustrate what is maximum amount you would pay for offer of $2,000. Suppose offer was $2,000, but delivery was to be in 2 years instead of 1 year. Illustrate what is maximum amount you would be willing to pay.

  Suppose individuals inverse demand for fish caught

Suppose an individual’s inverse demand for fish caught by a commercial fishery is estimated to be P = 10 – 0.4Q, where P is the price of fish (per pound) and Q is the quantity of pounds demanded.

  Supply and demand and competitive analyses

Using supply and demand and competitive analyses, explain what happens to a pharmaceutical company’s revenues and profits from an individual drug once it loses its patent protection. Then identify at least one strategy the company can use to mitigate..

  The intra-industry trade model

Explain the Krugman Imperfect Competition Model of intra-industry trade in automobiles, and what the model means. Use diagrams to demonstrate the model in autarky and in free trade, and to show the existence of gains from trade.

  Calculation of the unemployment rate

Calculation of the unemployment rate and part time workers who would prefer to work full time.

  Major predictions concerning exchange-rate movements

What is meant by the monetary approach to exchange-rate determination? What are its major predictions concerning exchange-rate movements? Give examples.

  Do you accept the salesmans offer

An experienced salesman offers his service (help you perfectly price discriminate) for $800. Based on c) and d), do you accept the salesmans offer? Show work, and explain briefly.

  Marker for tradable emissions

Assume that the marker for tradable emissions permits by power plants has been operating efficiently for several years. An engineering firm then invents a lower cost device for pollution abatement. What happens to the equilibrium market price of a tr..

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