What is the present worth of the profit at an interest rate

Assignment Help Econometrics
Reference no: EM13209432

Profits from recycling paper, cardboard,aluminum, and glass have increased at a constant rate of $1100 in each of the last 3 years. If this year's profit(end of the year 1) is expected to be $6000 and the profit trend continues through year 5, what is the present worth of the profit at an interest rate of 8% per year?

Reference no: EM13209432

Questions Cloud

Compute the number of moles of camp : conversion of 20 ATP molecules to cAMP per second. (Assume that each G protein activates a single unique adenylyl cyclase.) Calculate the number of moles of cAMP that are produced per second. Enter your answer to at least two significant figures.
What approach to economics does georges statement reflect : Economist George Stigler once wrote that, according to consumer theory, "if consumers do not buy less of a commodity when their incomes rise, they will surely buy less when the price of the commodity rises."
How to determine the density of the solution : A 100ml sample of sodium bromide containde co104.62g of sodium bromide. upon evaporation, 6.280g of reside was obtained. frome this data calculate each of the folowing for the solution; a density of the solution
Identify five distinct points on the budget line : Consider two goods, Gorillas (G) and Chimpanzees (C). Your utility function for gorillas and chimpanzees is given by U(G,C)=ln(G)+C. Gorillas cost $10 each, and Chimpanzees cost $4 each. You currently have $200 to spend.
What is the present worth of the profit at an interest rate : Profits from recycling paper, cardboard,aluminum, and glass have increased at a constant rate of $1100 in each of the last 3 years. If this year's profit(end of the year 1) is expected to be $6000 and the profit trend continues through year 5.
Explain the molecular formula of saccharin : Is the molecular formula of saccharin (a) C14H10O6N2S2, (b) C5H7O3NS, (c) C8H9O2NS, or (d) C7H5O3NS?
Alculate the optimal consumption and optimal leisure : consider a representative consumer with preferences over consumption and leisure given by U(C,L)=C^2/3 L^1/3 assume that she has a total of h=18 hours a day which she can use for leisure or trade in the market for a wage rate w.
Developing a new solar powered car : "Develop a PowerPoint presentation on developing a new solar powered car, electric or hybrid car to be presented to the CEO. In addition, describe the market opportunity for the car, its target market, and how you will focus the marketing mix on it.
Audience about the different layers of the atmosphere : If your specific purpose statement were "To inform my audience about the different layers of the atmosphere," you would probably organize your speech in ____________ order

Reviews

Write a Review

Econometrics Questions & Answers

  How does output per capita change through time

In this economy, all production output goes to either consumption or savings. The saving rate is fixed at s where 0

  How much must invest in year to earn

In order to have money available for replacing their family vehicle, a couple planned to have $220,000 available in 10 years by investing. If they plan to increase their savings by 10% each year, how much must they invest in year 1 if they expect ..

  Write a regression model

Describe the effect of this change in units on the estimated regression coefficients and their standard errors, t and F-statistics, p-values, and the value of R 2 .

  Determine present stream of accounting profits and economy

An owner can lease her building for $100,000 per year for three years. The explicit cost of maintaining the building is $35,000 and the implicit cost is $50,000. All revenues are received, and costs are borne, at the end of each year.

  Find out what is happening at the time of disposal

The estimated salvage value was $30,000. At the end of the 5th year the asset was sold for $90,000. From a tax perspective, what is happening at the time of disposal, and what is the dollar amount.

  Calculation why did they drop the price

Many states offer drivers an opportunity to customize their license plates for the price of a small premium paid to each state; these plates are known as vanity plates. When vanity plates were originally introduced in Texas they could be acquired ..

  Compute the internal rate of return and net present value

A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years. The firm has a marginal income-tax rate of 40%.

  What is the annual growth rate of real gdp

Suppose labor's share of GDP is 70 percent and capital's is 30 persent, total factor productivity is growing at an annual rate of 2 percent, the labor force is growing at a rate of 1 percent, and the capital stock is growing ata rate of 3 percent.

  Computing autonomous aggregate demand and short run output

Answer the following questions using the above data. Compute autonomous aggregate demand and compute the short-run output.

  What is the interest rate it will have to pay

Suppose that due to a political conflict inside the country, there is a risk the government will default in its debt in t = 2. The investors perceive the probability of that default to be = 0:10. What interest will they demand (HINT: because inves..

  What steps should it take to lower costs and still produce

A firm uses two variable inputs, labor, L, and raw materials, M, with typically shaped isoquants. It pays $20 per hour for L and $5 per unit for M. At the current mix of L and M, the marginal products of L and M are: MPL = 20 MPM = 4

  Compute output per firm and profit per firm at this price

suppose that there are 70 firms in operating in the industry. using the MC curve, find out how much output in total is delivered to the market at each price (you only need to consider prices equal to the MC values above). now assume that the marke..

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