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!
A corporation produces output with a constant market price of $70 per unit. The marginal product of capital is 1/(2K), where K is units of capital, with each unit assumed to be worth $1. The life span of the capital is 10 years, implying the straight line depreciation rate δ=.10. The financing cost of capital is ρ=.10. Also, assume the discount rate to use in any present value calculations is .10.
a. What is the optimal level of capital for the firm?
b. Suppose the corporate tax rate on accounting profits is 40%. The firm can include depreciation at the rate δ per year in its accounting costs, but not its financing costs. What is the optimal level of capital for the firm?
c. For the scenario in b., what is the effective corporate tax rate?
d. Same assumptions as b. Except, now suppose the government allows the firm to depreciate 25% of its capital costs immediately, while the remainder depreciates at the straight line rate δ, what is the optimal level of capital for the firm?
Perform your macroeconomic analysis on the material. Remember that you need to provide an analysis of your chosen currency against the U.S. dollar over the 5-year period ending with 2010.
In the lesson presented by Sal on Oligopolies and Monopolistic Competition he creates a two dimensional grid of the market types based on number of competitors and degree of product differentiation. Make sure you view this lesson.
At an annual compound interest of 10% per year, would you rather receive $10,000 per year for 5 years or receive $5,000 per year for 10 years What is your preference if you must pay these amounts rather than receive them
A perfectly compeitive market has 11 identical firms. The 11 firms have marginal cost of: MC = 2.6q + 5.4 Market demand: 59 - 4.5P
1) Compare and contrast the "four frames of organizations" and why they are important to a program manager's understanding of the organization. Your response must be at least 200 words in length.
Walmart has any special foreign exchange problems resulting from its strategic stance payment in USD, and what alternative policies the company could adopt in the event of such problems.
Suppose that Home maintains a stable fixed exchange rate with Foreign. What does this imply about the relationship between the two countries' interest rates?
Compute the expected utility of each project and identify the preferred project according to this criterion.
Suppose the elasticity of U.S. exports with respect to the real exchange rate is very low
What is the expected value of the company in one year, with and without expansion? Would the company's stockholders be better off with or without expansion? Explain. What is the expected value of the company's debt in one year, with or without expa..
scenariothis course uses the ctu professional learning model to teach with hands-on industry-related problem-solving
Assume that the banking system is loaned up and that any open-market purchase by the Fed directly increases reserves in the banks. If the required reserve ratio is 0.2, by how much could the money supply expand if the Fed purchased $2 billion wort..
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