The internal rate of return (IRR) is the interest rate that sets the net present value (NPV) of the cash flows equal to zero Select one: True False
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- The tree in Karura forest grow such that the volume of timber at time t can be represented as- Q (t) = 900t + 5ot+ 60t +7¢4 (Note that thise trees do not follow a typical biological growth function). The annual real interest rate is 0.19 and each unit of timber Can be sold at a price of Ksh. 100 net of harvest costs. Assume there is no opport unity Cost of using lond to grow timber- Assume also that at Ě =89 years from beginning of #e trees growtd, Kinyua obtained sole ownership of the forest through a surprise bequest · i) What is the Marginal benefit Minyua would get by Haiting to cut the trees for another year ? O What is the marginal castbe would incur by Waiting to cut the trees for another year? ii) Should he Wait another year to cut clown the trees ? (v) Assume that the interest rate is different such that t = 89 is the e xact optimal time to harvest the trees. Hhat is the annual interest rate ? Scanned with CamScannerShunda is a calculator assembly company, purchase a full set of the calculator parts, assembled into a calculator to sell in the market. In recent years, the price of the calculator has remained steady at 60 yuan/units, the basic data of the input and output of shunda in 2013are listed in the table below: Hourly wage is 6 yuan per hour, price of parts is 25 yuan per set, power consumption is paid by 0.6 yuan per watt, the extract depreciation of equipment is 3 yuan per hour, and Shunda spends fixed costs 10000 yuan per month to pay all of the regular fee According to the above data, is it possible to estimate the production function and cost function (TC, TVC, AC and AVC)?Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby’s sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $10.45 million. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12.89 million. What was his annual rate of return on this sculpture?
- Define the term net present worth(NPW)?What rent PSF would be needed to incentivize this development? Suppose new Class A Office developments cost $200 per square foot (psf), all in (i.e. land cost, construction, dev costs, reasonable dev profits) If the new building can be sold for $200 psf, development is feasible. Suppose investors are willing to pay $12.50 per dollar of (net operating) income on the buildingA father wants to start setting aside money for his daughter's college fees, who is eight years old. In ten years, the daughter will start college. She will need to pay for her college costs for four years with an annual sum of $20,000 in current (constant) dollars. Assume that these tuition payments will be sent in at the start of every academic year. (At the conclusion of ten years, the first payment is made.) The interest rate on the savings account will be 8% compounded quarterly (market interest rate) during this time, whereas the expected general inflation rate for the future is 5% annually. How much money would the daughter need to borrow in order to pay for her freshman year if the father decides to save only $500 (real money) per quarter? (a) $1,920 (b) $2,114 (c) $2,210 (d) $2,377
- I was told that the NPV alpha and IRR alpha is correct. but I was also told that project alpha has a higher internal rate of return and higher and present value. Is there many mistakes, within the workout?Planning for a major redesign, Itumeleng collected data at her store on several consecutive Saturday mornings. She noticed that customers arrived at the checkout at a rate of approximately 100 per hour. Fully 20 percent of the customers had 10 items or less. Those people took about 2 minutes to serve on average, while customers with more than 10 items took about 4 minutes to process. Itumeleng expects service time to improve when universal price code readers are installed in the new design. Help Itumeleng with her design for the system,5.12 (LG 5.2) An advertising campaign will cost $200 000 for planning and $40 000 in each of the next six years. It is expected to increase revenues permanently by $40 000 per year. Additional revenues will be gained in the pattern of an arith- metic gradient with $20 000 in the first year, declining by $5000 per year to zero in the fifth year. What is the IRR of this investment? If the company's MARR is 12 percent, is this a good investment?
- The rate of net investment 50t2/3 and capital stock at t=0 is 100. Find the capital stock function.Eduardo has $7,000 in savings. His bank pays 6% interest per year on savings. He withdraws all of his savings to purchase a machine for his business. At the end of the year, he can resell the machine for $1,000. Based on this information, what are Eduardo's economic costs for the year, in dollars? Enter a number only, no $ sign.Suppose that the net investment flow is described by the equation I(t) = 3t/2 and that the initial capital stock, at time t= 0, is K(0). What is the time path of capital K? If net investment is a constant flow at I(t) = 1000 (Ghana Cedis per year), what will be the total net investment (capital formation) during a year, from t= 0 to t= 1? If I(t) = 3t/2 (thousands of Ghana Cedis per year) – a nonconstant flow – what will be the capital formation during the time interval [1, 4], that is, during the second, third, and fourth years? i) Show that the Cobb-Douglas production Q=AK*L-a where Q is total output, Kis capital stock, Lis labour stock and A and a are positive stants, exhibit constant returns to scale. ii) What returns to scale does Q=5K025 L06 exhibit?
