A young software genius is selling the rights to a new video game he has developed. Two companies have offered him contracts. The first contract offers 8,000 at the end of each year for the next five years, and then 18,500 dollars per year for the following 10 years. The second offers 10 payments, starting with 9,500 at the end of the first year, 12,500 dollars at the end of the second year, and sof forth, increasing by G dollars each year (i.e., the tenth payment will be (9,500 dollars +9 x G dollars). Assume the genius uses a MARR of 9%. Which contract should the young genius choose? Use a present worth comparison and least common multiple of repeated lives (Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar}. For one life of project one, the present worth is: Number For repeated lives of project one, the present worth is: Number For one life of project two the present worth is: Number For repeated lives of project two, the present worth is: DOD Number

A young software genius is selling the rights to a new video game he has developed. Two companies have offered him contracts. The first contract offers 8,000 at the end of each year for the next five years, and then 18,500 dollars per year for the following 10 years. The second offers 10 payments, starting with 9,500 at the end of the first year, 12,500 dollars at the end of the second year, and sof forth, increasing by G dollars each year (i.e., the tenth payment will be (9,500 dollars +9 x G dollars). Assume the genius uses a MARR of 9%. Which contract should the young genius choose? Use a present worth comparison and least common multiple of repeated lives (Perform all calculations using 5 significant figures and round any monetary answers to the nearest dollar}. For one life of project one, the present worth is: Number For repeated lives of project one, the present worth is: Number For one life of project two the present worth is: Number For repeated lives of project two, the present worth is: DOD Number

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.6P

See similar textbooks

Similar questions

Our company is considering to start a new product. We must choose between 3 options. Use Excel to decide which option to choose (if any). o Option 1 costs $10,000 and will earn $2000 annually O Option 2 costs $15,000 and will earn $2750 annually Option 3 costs $20,000 and will earn $3500 annually O Letâ€™Ms define the lifetime of the products as 30 years. In Excel, construct a table and graph of the 3 Present Worths versus interest rate Summarize in a table at which range one is preferred over the other
Don't give inappro
Assume that the parcels are essentially identical and that the minimum selling price of each is $575,000. The following table states each person's willingness and ability to purchase a parcel. Willingness and Ability to Purchase Person (Dollars) Andrew 520,000 A-Z Beth 510,000 Lorenzo 750,000 Neha 660,000 Sam 600,000 Teresa 550,000 Which of these people will buy one of the three beachfront parcels? Check all that apply. O Andrew Beth O Lorenzo O Neha O Sam O Teresa Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $535,000. This fourth will nurchase it from the seller for at least the minimum ncice be sold because parcel MacBook Air F12 O O O
What is Walgreens VRIO Framework?
A debt instrument where the owner receives a fixed coupon every year until the maturity date and then repays the face value is called a O simple loan. O discount bond. O coupon bond. O fixed-payment loan.
A highway bridge is being considered for replacement. The new bridge would cost SX and would last for 20 years. Annual maintenance costs for the new bridge are estimated to be $23,000. People will be charged a toll of $0.29 per car to use the new bridge. Annual car traffic is estimated at 360,000 cars. The cost of collecting the toll consists of annual salaries for five collectors at $8,000 per collector. The existing bridge can be refurbished for $1,400,000 and would need to be replaced in 20 years. There would be additional refurbishing costs of $60,000 every five years and regular annual maintenance costs of $21,000 for the existing bridge. There would be no toll to use the refurbished bridge. If MARR is 10% per year, what is the maximum acceptable cost (X) of the new bridge? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Choose the correct answer below. O A. The maximum acceptable cost of the new bridge is $1,931,249.…
This year Don Adam signs a “Fifty Million Dollar” contract with the Atlanta City Warriors, a new basketball team. He will be paid $10 million per year over the next 5 years beginning next year. The interest rate is 10%, and the Warriors have enough in the bank to generate the payment stream. If the interest rate falls, the present value of this contract will fall. the present value of this contract will be unaffected. the present value of this contract will rise. Don will be paid less than $10 million each year. Don will be paid more than $10 million each year as he can invest the money.
David runs his own business. He received an offer from a company for $50,000 per year. If he sells his business, he can get an amount of $100,000. Assume the annual interest rate is 5%. David is confused to run his own business or join the company. David annual revenue from his business is enough to cover all explicit costs and has $60,000 left over. There are no additional implicit costs. Calculate David’s accounting and economic profit.
Your firm is thinking about investing $250,000 in the overhaul of a manufacturing cell in a lean environment. Revenues are expected to be $39,000 in year one and then increasing by $13,000 more each year thereafter. Relevant expenses will be $15,000 in year one and will increase by $7,500 per year until the end of the cell's nine-year life. Salvage recovery at the end of year nine is estimated to be $10,000. What is the annual equivalent worth of the manufacturing cell if the MARR is 9% per year?
P-l-e-a-s-e- -r-e-a-d- -a-n-d- -u-n-d-e-r-s-t-a-n-d- -t-h-e- -s-p-e-e-c-h- -o-f- -P-h-i-l-i-p-p-i-n-e- -P-r-e-s-i-d-e-n-t- -B-o-n-g-b-o-n-g- -M-a-r-c-o-s- -o-n- -h-i-s- -2-0-2-3- -(-J-u-l-y- -2-4-,) -S-t-a-t-e- -o-f- -t-h-e- -N-a-t-i-o-n- -A-d-d-r-e-s-s- -w--as- -t-h-e- -s-e-c-o-n-d- -S-t-a-t-e- -o-f- -t-h-e- -N-a-t-i-o-n- -A-d-d-r-e-s-s- - -a-n-d- -w-h-a-t- -i-s- -y-o-u-r- -r-e-a-c-t-i-o-n- -a-b-o-u-t- -h-i-s- -S-O-N-A-,- -w-h-a-t- -i-t- -t-a-l-k- -a-b-o-u-t, -w-h-a-t- -i-s- -y-o-u-r- -o-p-i-n-i-o-n- -a-b-o-u-t- -i-t-.- Transcript : https://www.rappler.com/nation/sona-2023-full-text-transcript-speech-president-marcos-jr/ willing to give good feedback
The fact that your resume is attached/enclosed O Middle O Closing O Beginning
Utilize the following table to answer the following question: O Q-5 O Q-3 Q 0 1 7 8 9 10 Q=4 O Q-1 2 3 4 5 6 TC 30 55 75 85 100 120 145 185. 240 310 395 MC N/A 25 20 10 15 20 25 40 55 70 85 TVC N/A 25 45 55 70 90 115 155 210 280 365 TFC 30 30 30 30 30 30 30 30 30 30 30 AVC N/A 25 22.5 18.33333 17.5 18. 19.16667 22.14286 26.25 31.11111 36.5 ATC N/A 55 Question: Suppose that the prevailing price in the market drops to $16. What output level maximizes profit for the firm? 37.5 28.33333 25 24 24.16667 26.42857 30 34.44444 39.5