Write a description of a scenario where this type of

Assignment Help Microeconomics
Reference no: EM13387889

A generous university benefactor has agreed to donate a large amount of money for student scholarships. The money can be provided in one lump sum of $12 million in Year 0 (the current year), or in parts, in which $7 million can be provided at the end of Year 1, and another $7 million can be provided at the end of Year 2.

Describe your answer for each item below in complete sentences, whenever it is necessary. Show all of your calculations and processes for the following points:

Assuming the opportunity interest rate is 8%, what is the present value of the second alternative mentioned above? Which of the two alternatives should be chosen and why?
How would your decision change if the opportunity interest rate is 12%?
Provide a description of a scenario where this kind of decision between two types of payment streams applies in the "real-world" business setting.

Reference no: EM13387889

Questions Cloud

Recommend two 2 uses of a tax shield that can improve : tax shields please respond to the followingrecommend two 2 uses of a tax shield that can improve return on the equity
For each of the scenarios provided a state if control : aviss taxable income for the year is 300000 and bests taxable income for the year is 425000. for each of the scenarios
An organizations head office is connected to its branch : an organizations head office is connected to its branch office over the internet. the network connection works fine
Describe why it is significant to know the basic building : explain why it is important to know the basic building components systems and the order in which they are constructed
Write a description of a scenario where this type of : a generous university benefactor has agreed to donate a large amount of money for student scholarships. the money can
Write an apa style paper outlining the effects of financial : write an apa style paper outlining the effects of financial planning governance and ethical issues in modern economies.
Strayer university all rights reserved this document : copy 2013 strayer university. all rights reserved. this document contains strayer university confidential and
The marginal revenue function is mr250-q graph total : the demand curve is given byqd500-2pxa. what is the total revenue function?b. the marginal revenue function is mr250-q.
Which of following statements regarding depreciation is : which of the following statements about depreciation is correct?a. the depreciation method selected has no impact on

Reviews

Write a Review

Microeconomics Questions & Answers

  How much interest will the government pay each year

At a 10 percent rate of interest, how much interest will the government pay each year? d) If this same budget deficit occurs for a second year, what would the national debt become? And at a 10 percent rate of interest, now how much interest would ..

  Can you be certain that you should recommend to your

You are comparing two potential mutually exclusive investment projects. You have calculated the expected NPV of project A to be $3,758 and that of project B to be $3,114. Can you be certain that you should recommend to your management to implement pr..

  Name a good with a negative externality

1) Name a good with a negative externality. What is the external cost? Will a free market for this good provide too much or too little to be allocatively? how can the government ensure an optimal amount to the good is produced?

  Difference between non-cooperative and coordination games

Write a One Page write up with single space about the difference between Non-Cooperative and Coordination Games. What is the benefit of coordination between players.Stick to the outcome, not to the definition.

  A tax imposed on imports is called

This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own. A tax imposed on imports is called:

  What was dianes economic profit

Highest average fixed cost at which the firm can produce any given level of outputd. lowest marginal cost at which the firm can produce any given level of output

  Why is there so much advertising in monopolistic competition

Why is there so much advertising in monopolistic competition Pick a product that you have purchased in a monopolistically competitive market structure and tell us how advertising did or did not play a key role in your decision to purchase that pro..

  Calculate the equilibrium level of income or real gdp

Assume that the consumption of schedule for a private open economy is such that consumption C = 50 + 0.8Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 30 and Xn = 10. Reca..

  What would happen to the capital stock of solow model

suppose a massive unmanned spaceship were to crash in the US instantly increasing the capital stock substantially. Describe using the Solow Model, what would happen to the capital stock, and to output over time. Be sure to include graphs of bothe ..

  What is the relationship between exports and imports

At one time, it was believed that the way for a nation to prosper was to export as much as possible while importing as little as possible. More money would flow into a country than out of a country. Is this really a sound economic strategy

  Show what happens to the individual demand curve for qy if

Show what happens to the individual demand curve for QY if income increases to 150. (As before, you are only required to calculation the quantity demand for the prices 2, 4, 5, and 10. You can then impute a reasonable approximation of the rest of the..

  Suppose that there is a decline in the cost of a unit of

suppose that there is a decline in the cost of a unit of capital. in the long runa. what will be the substitution

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