What is the present worth of the savings

Assignment Help Microeconomics
Reference no: EM132158660

Question: The market volume for widgets is increasing by 15% per year from current profits of $200,000. Investing in a design change will allow the profit per widget to stay steady; otherwise profits will drop 3% per year. What is the present worth of the savings over the next 5 years? Ten years? The interest rate is 10%. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132158660

Questions Cloud

Should columbia pizza buy the second oven : Based on your calculations, should Columbia Pizza buy the second oven? Why? What is the net financial impact?
How long will take to recover the initial investment : A homeowner may upgrade a furnace that runs on fuel oil to a natural gas unit. The investment will be $2500 installed. The cost of the natural gas will average.
Compute the cost of ending inventory under the fifo method : Assume that Brian uses a periodic inventory system and that there are 760 units left at the end of the month. Compute the cost of ending inventory
Find out the interest payment for each period : A 30-year mortgage for $120,000 has been issued. The interest rate is 10% and payments are made monthly. Print out the balance due, principal payment.
What is the present worth of the savings : The market volume for widgets is increasing by 15% per year from current profits of $200,000. Investing in a design change will allow the profit per widget.
Would indirect exporting be a strategy that would benefit : What would be the most appropriate strategy for Vonkel to adopt to maintain optimal inventory levels? Explain your choice.
Expected ethical conduct characteristics : Write down a policy listing expected ethical conduct characteristics for your employees in your IT organization.
What is the amount you will receive today : Current 10 year interest rates are at 5% and the current tax on lottery winnings is 40%. What is the amount you will receive today with the lump sum option
Find the new contribution margin ratio and new net income : Company A is thinking of mass-producing one of its products. Find the New Contribution Margin Ratio and New Net Income

Reviews

Write a Review

Microeconomics Questions & Answers

  Which project for a percent change in weekly burrito revenue

The Burrito Barn is considering a price reduction on the Firegut Burrito. Giuseppe, the proprietor of Burrito Barn, has recorded sales data at different price levels over the last year. He is quite confident that no other demand factors, such as c..

  What is an opportunity cost

Allocating a square block in the heart of New York City for a surface parking lot or allocating a square block at the edge of a typical suburb for such a lot?

  Provide an overview of outsourcing

1.   What does it entail?

  Profit-maximizing price and quantity chosen by monopolist

A monopolist faces a market demand curve given by P=12-2Q and has a total costs given by TC=6+Q^2. What is the profit-maximizing price and quantity chosen by the monopolist? What is the monopolist's profit?

  How large of an insurance policy should the farmer buy

If the farmer can buy insurance for a premium of $0.05 per dollar of coverage, how large of an insurance policy should the farmer buy?

  Determine the breakeven point

Determine the breakeven point (lowest sales volume at which total sales income just equals total production cost). (Hint: This may be done by trial and error).

  Find the maximum that betty would be willing to pay for

a betty has no savings but she can borrow at r .05. what is the maximum that betty would be willing to pay for an

  What is the individuals optimal consumption

Consider an economy composed of identical individuals who live for two periods. These individuals have preferences over consumption in period 1 and 2 given by U = (c1)0.5 × (c2)0.5. They receive an income of 100 in period 1 (young) and 20 in perio..

  Discuss the transactions contemplated by merger agreement

Discuss the transactions contemplated by the Merger Agreement and recommended that the stockholders of Tesla approve the Merger and the Share Issuance.

  The principles of keeping things simple

An effort to stick with the principles of keeping things simple, I found that collaboration is a cooperative arrangement in which two or more parties, which may or may have not had a previous relationship, work jointly towards a common goal (Business..

  Why monetary policy is carried out by the federal reserve

Monetary policy is carried out by the Federal Reserve. Describe how they use the three tools, reserve requirement, open market operations (Fed. Fund rates) and Discount Rates. Be sure to explain the players involved in each tool, the benefits of e..

  What is the profit-maximizing price of e-books

An e-commerce company sells e-books related to self improvement topics. In the short run, what is the profit-maximizing price of e-books

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