Should start currency if discount rate is twenty percent

Assignment Help Financial Accounting
Reference no: EM132911111

Problem 1: You figure since there are 8,800 cryptocurrencies now - more than actual fiat currencies (180) or more than the number of companies listed on the US stock market (3,900) - why not start your own and trying to become a billionaire? You can't decide on a name - ElonMuskMicroStrategy, Tulips, BernieMadoff, or Ponzi - but it doesn't matter. Whatever you pick there is a 3.14% chance Elon tweets about it and you become rich. Of course, your coin would have some incredibly hard math behind it so the GPUs to mine your own coin would cost $2 million today. Your electric bill would then be $0.5 million per year for the next 6 years starting a year from today. 6 years from today, if Elon tweets about it, you need to spend another $50 million building out your server farm. You then will receive $100,000,000 per year for the next 10 years starting a year after the $50 million cost when all the coins are mined. If you fail, you'll need to spend $1 million settling with environmental groups for all electricity you wasted (no choice you have to spend it). If your discount rate is 20%, should you start your own currency?

Reference no: EM132911111

Questions Cloud

Strong educational programs : At UC, it is a priority that students are provided with strong educational programs and courses that allow them to be servant-leaders in their disciplines
Find what the liability to be recorded would be : The balance sheet to prepared is dated December 31, 2020. if the pre-collection was recorded under the income method, the liability to be recorded would be?
Calculate the cost of the machine for prosperous company : Prosperous Company is a public company operating in Saskatchewan. Calculate the cost of the machine for Prosperous Company.
Passwords-one not secure-one acceptable : Pick and three passwords: one not secure, one acceptable, and one very secure.
Should start currency if discount rate is twenty percent : Environmental groups for all electricity you wasted (no choice you have to spend it). If your discount rate is 20%, should you start your own currency?
What is the actual value of the stock today : You aren't sure if you should give your money to the "Technoking of Tesla". If Tesla's discount rate is 12%, What is the actual value of the stock today?
Responsibilities of computing professionals : What are the responsibilities of computing professionals. can you please guide me
Foundation called future of life institute : Elon-Musk donated $10 million to a foundation called the Future of Life Institute. How valid are Elon Musk, Bill Gates, and Stephen Hawking's concerns?
Singtel pandemic of covid-19 in 2020 : What is the challenges faced by Sintel in customer demand during the pandemic of COVID-19

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the consolidated balance for the equipment account

Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2012. On that date, Paar’s equipment (10-year life) has a book value of $440,000 but a fair value of $566,000. Kimmel has equipment (10-year life) with a book value of $261,000 but a ..

  Find what is level of inventory

Soaring Eagles Corp. has total current assets of $11,592,000, current liabilities of $5,312,000 and a quick ratio of 0.89. What is its level of inventory?

  How much in us dollars will bobcat pay in six months

How much in U.S. dollars will Bobcat pay in 6 months without a hedge if the expected spot rate in 6 months is assumed to be Won1,107?/$?

  What are the rights of the stakeholders of an entity

Provide an example of a director that has not fully complied with these legal duties. What were the penalties involved? (Ensure you provide evidence via appropriate references you have obtained to support your answer).

  Determine the original cost of the equipment

The accumulated depreciation on the equipment to date of sale was 63,000. Determine the original cost of the equipment

  What is the capitalized cost of the land and the discount

What is the capitalized cost of the land and the Discount on Note payable, respectively? Sadeas Inc. purchased raw land in an area expected

  What is the combined future value of the cash flows

You received $100 at the beginning of year, If cash flows are deposited at 12 percent, what is the combined future value of the cash flows at the end of year 3?

  Financial performance

"Financial Performance" Identify at least (3) ratios that could be manipulated to mislead investors and creditors regarding the company’s financial condition. Examine the motivation of management to manipulate the ratios identified.

  Construction accounting and financial management

Determine the marginal tax rate for a corporation whose federal tax rate is 34% and whose state tax rate is 11%. Explain the rationale for having a separate cost code for site concrete-labor and site concrete-concrete as is the case in Figure 2-6 fro..

  Previously used the equipment in his sole proprietorship

Liz and John formed the equal LJ Partnership on January 1 of the current year. Liz contributed $80,000 of cash and land with a fair market value of $90,000 and an adjusted basis of $75,000. John contributed equipment with a fair market value of $170,..

  Compute inventory turnover and days inventory on hand

Compute inventory turnover and days' inventory on hand under each of the inventory cost flow assumptions listed in requirement 2. (Round to one decimal place.) What conclusion can you draw?

  Prepare an analysis to show which alternative makes

Prepare an analysis to show which alternative makes the best use of Sharp Image's factory space - could be used to manufacture another product with a contribution margin of $75,000.

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