The salvage value of the tractor is expected

Assignment Help Business Economics
Reference no: EM131009729

Schaefer organic farms purchased a new tractor at the cost of $80000. Annual operating cash inflows are expected to be $30000 each year for four years. At the end of the tractors useful life, the salvage value of the tractor is expected to be $5000.

What is the net present value if the cost of capital is 12 percent?

Reference no: EM131009729

Questions Cloud

Management resources devoted to opposing union elections : Suppose that an economy is in a steady state, so that ongoing union organization is just enough to maintain some constant density of union coverage. A new law is passed that greatly increases the penalties for firms found to have violated laws about ..
Approximate the annual growth rate : Suppose that in a particular country, GDP per capita was $ 10,000 in 1960 and $ 40,000 in 2008. Using the rule of 72 (not a calculator), approximate the annual growth rate of GDP per capita.
Firm has the exogenous cost function : A firm has the exogenous cost function C(Q) = 354Q-30Q^2 + Q^3. Compute the marginal cost function. Use calculus to find the value of Q at which average cost is minimized. Does this cost function satisfy the three assumptions made in class concerning..
The most reasonable prediction in this game is what : Consider the following game between player 1, who chooses among strategies U, M, and D, and player 2, who chooses among strategies A, B, and C. Why is this normal form representation different from others in the chapter? The most reasonable predictio..
The salvage value of the tractor is expected : Schaefer organic farms purchased a new tractor at the cost of $80000. Annual operating cash inflows are expected to be $30000 each year for four years. At the end of the tractors useful life, the salvage value of the tractor is expected to be $5000. ..
Concept of some minimum standard of living for in society : Your paragraph should discuss whether income distribution in 2011 is equitable or not. Support your assertion with at least two reasons why you believe your assertion is an acceptable way to look at the question. In your post, consider how our person..
Calculate the efficiency loss of the monopoly : A monopolist has demand curve given by P = 100 –Q. The total cost is given by TC = 16 + Q2. Find the monopolist’s profit maximizing quantity and price. How much economic profit does the monopolist make? If this was a perfectly competitive firm, what ..
Draw representative isoquants for cigarette-rolling : In the early 1880’s cigarette-rolling machinery became available. Prior to this all rolling was done by hand. The machines dramatically cut the cost of rolling cigarettes. But they were not fully automatic—they needed the permanent presence of an ope..
Firms total cost function is given by the equation : A firm's Total Cost function is given by the equation: TC = 4000 + 5Q + 10Q2 a. Write an expression for each of the following cost concepts: -total Fixed Cost -average Fixed Cost -Total Variable Cost -Average Variable Cost -Average Total Cost -Margin..

Reviews

Write a Review

Business Economics Questions & Answers

  Asume the following open economyc 300 080y - 125i 150g

assume the following open economyc 300 0.80y - 125i 150g 250x 115m 125.05ya. conclude the equilibrium level of

  How low much a quota be to have an impact on trade

How low much a quota be to have an impact on trade? Using a demand -and -supply diagram, illustrate and explain the net welfare loss from imposing such a quota. Under what circumstances would the net welfare loss from an import quota exceed the net w..

  What general costs must be covered in either circumstance

Some restaurants are open only for breakfast and lunch but are closed for dinner. What economic factor's determine if it is better to close the restaurant for dinner or leave it open for all three meals times. What general costs (Fixed and/ or variab..

  What is the maximum market price you will pay

Wagner Industries preferred stock has a par value of $50 and a stated dividend rate of 6.0%. This means that Wagner will pay $3.00 (6% x $50) in dividends per share, per year forever. There will never be an increase or decrease in the dividend. Suppo..

  Using basic economic principles

Using basic economic principles, state what you think will cause market fluctuations over the next few years as the economy struggles to recover. What areas of the economy should be closely watched as indicators of future activity?

  Dollar retains its dominant role in global economy

Can you identify the consequences of a strong dollar or a weak dollar in the United States? Which direction do you prefer for the overall health of the American economy? Should the U.S. take measure to ensure that the dollar retains its dominant role..

  Find the prices that form equilibrium-simplicity and reality

Suppose two firms sell an homogeneous product; they compete in prices. Their respective marginal costs are MC1(q) = 10 and MC2(q) = 20. Find the prices that form an equilibrium (for simplicity and reality, assume that prices are quoted in units no sm..

  Rolex watch manufacturer had in inventory of watches worth

At the end of 2012 the prestigious Rolex watch manufacturer had in inventory of watches worth $725 dollars. In 2013, Rolex produced $333 worth of watches and sold $260. What was the change in inventories in 2013? (Hint: careful with the signs, rememb..

  Transition according to solows model

Explain how the following events affect output, capital and consumption per unit of labor in the long run and along the transition according to Solow's Model:

  Find the monopolists profit maximizing price

A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/20,000, making the marginal revenue MR=1.70-Q/10,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. So, the total cost is..

  Why is economics considered a social science

Why is economics considered a social science? What role does economics play in your personal and professional lives?

  Cournot quantity competition in oligopoly market

The demand for a mysterious good X in is Q = 10 − P , where P is the price of good X per pound and Q is the quantity demanded in pounds. The marginal cost of producing the good is $2 per pound. Find each firm’s Nash equilibrium price and quantity. Wh..

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