Eideas signed a contract to lease a building at P60,000 a year with an annual increase of P1,000 a year for 5 years. Payments are to be made at the end of each year, starting one year from now. If money is worth 8%, what lump sum paid today is equivalent to the 5-year lease-payment plan? Answer: P=246,935.03
Q: at a price of $4.91 per pound, the supply for cherries is 16,124 pounds, and the demand is 10,393…
A: First we need to formulate a supply and demand Schedule of this information . And then we will find…
Q: O Find moon, nodion and mode ot the distaibution O Dotonnine the tinst quardile and 894h Poncontile
A: Find mean, median and mode of the distribution. Mean= For mean we shall calculate the mid point of…
Q: employer sends cach employee a Form W-2 at the end of cach year showing what taxes were withheld.…
A: Taxes are compulsory commitments required on people or partnerships by an administration substance.
Q: Suppose that demand for anchovy pizza is given by PD 50 – QD, and the supply of anchovy pizza is…
A: External cost refers to the spill-over cost of production or consumption of a good on third party…
Q: Governor Mitch Daniels advocates that the government intervene less in business to promote jobs and…
A: Supply-side Economics The macroeconomic view of supply-side economics is conservative and…
Q: What is monopolistic competition? 30 words
A: Monopolistic competition is a mixture of perfect competition and monopoly.
Q: Wiebe Trucking, Inc., is planning a new warehouse to serve the west. Denver, Santa Fe, and Salt Lake…
A: We find that Salt Lake City and Denver intersect each other at some quantity X. Before quantity X,…
Q: 3. Consider a monopolist who faces the following demand. Demand: P= 100 – 10Q MC= 50+20 a) Find the…
A: Profit maximization is a process business firms undergo to ensure the best output and price levels…
Q: (c) Long-run average total cost curve is a curve that shows the lowest (Unit) cost at which the firm…
A:
Q: Headline Core inflation inflation Other goods and services (relative to the base year (relative to…
A: *Answer: Core inflation = (102/100) -1 = 2% Headline inflation = [( 116/2+ 102/2) - 100] = 9%…
Q: Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only…
A: No. of factories Q=100 Q=200 Q=300 Q=400 Q=500 Q=600 1 260 200 160 200 280 400 2 330 240 160 160…
Q: The total cost of a milling machine is P865821 including taxes and it can last up to 8 years. What…
A: The sum of years' digits technique is a type of accelerated depreciation that is based on the notion…
Q: d.) Notice that the competitive equilibrium (Qº, Pª) and the point (Qª, P³) are both on the supply…
A: PLEASE FIND THE ANSWER BELOW.
Q: In 2018, several European couptries were faced with the problem of increasing intation At the same…
A: We know that inflation is the rate of increase in prices over a time period. It is a general measure…
Q: The lerner index is 0.3, find the markup over marginal cost.
A: Lerner index is used to measure the monopoly power in the market . And it is positively related with…
Q: Consider providing electricity to a home which needs 10 kW of power by the two options & B given…
A: For Annual Cost basis of comparison we derive the annuity of the net cash flow of the costs of two…
Q: The capitalized worth method is applicable only if there is reason to believe a series of cash flows…
A: Answer- True The capitalized worth method tells the value of the income that can be earned in the…
Q: A small town is served by many perfectly competing supermarkets, which have constant marginal cost.…
A: a) If the supermarkets merge to establish a single network, they have created a monopoly. The AR…
Q: Suppose that the unemployment rate has increased by 2%. What would be the change in the output gap?…
A: Gross Domestic Product refers to the sum of all the values of the goods and services that people…
Q: a. Using the graph above, at the world price of $80 per tire, how many tires will the United States…
A: Here the supply curve is the curve depicting how much production of manufacturing goods is being…
Q: Consider providing electricity to a home which needs 10 kW of power by the two options A & B given…
A: For Annual Cost basis of comparison we derive the annuity of the net cash flow of the costs of two…
Q: What is the maximum amount of money created from a $3 million deposit in the banking system if the…
A: Required reserve ratio is the percentage of total reserves that banks need to hold as required…
Q: Consider the following goods and services. Which are the most likely to be produced in a perfectly…
A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question…
Q: The short-run effect of an increase in the money supply is to Part 2 A. increase the price level…
A: Money supply is defined as the total volume of money that is held by the public at a particular…
Q: How did beliefs about business (capitalism) lead to economic growth and innovation.
A: Capitalism represents the economy having full power in hand of producers or investors. They work…
Q: Assume the manager is located at point B in the diagram above, and he is charging a price of Po.…
A:
Q: QUESTION 1 Debt (-) items in the balance of payments correspond to anything that: Oa. Involves…
A: The correct answer is given in the second step.
Q: Over the past year (from 1 year ago to today), the inflation rate was 4.31%, the risk-free rate was…
A: The correct answer is given in the second step.
Q: Do you think that higher education in engineering should receive a greater government subsidy…
A: Education plays a very significant role in increasing the cognitive skills, efficiency and knowledge…
Q: pros and cons of shared economy in details
A: A peer-to-peer activity of purchasing, providing, or sharing access to items and services supported…
Q: E03
A: Education sector is important for all the countries of the world. Education has changed to a great…
Q: When the government engages in expansionary fiscal policy there is a. a budget deficit and increase…
A: Fiscal policy is defined as a policy which is undertaken by the government of a country to influence…
Q: What are the key developments in electronic banking does in recent time? How ha s it become so…
A:
Q: A firm produces two goods in pure competition and has the following total revenue and total cost…
A: Given: The total revenue function is TR = P1Q1 + P2Q2 The total cost function is TC = 2Q12 + Q1Q2…
Q: Determine the inflation rate of Country ABC using its CPI from 2020 and 2021. Price Price Price…
A: Total price of the commodities in 2021 = 105,500 Total price of the commodities in 2020 = 113,500…
Q: When a country has a comparative advantage in the production of a good, it means that it can produce…
A: Comparative advantage depends on opportunity cost, which is the decrease in production of one good…
Q: Inventory investment = $ %3D Net exports = $ Gross domestic product = $ Statistical discrepancy $…
A: The national income or GDP can be calculated by using the expenditure method. The expenditure method…
Q: How will an increase in offshoring affect the demand for skilled labor and the wages ofskilled labor…
A: Offshoring refers to when the business relocated its supply chain, operations, or production from…
Q: Which of the following appears to be a safe assumption when there is no difference between the…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: How does perfect competition lead to allocative and productive efficiency? Perfect competition leads…
A: The correct answer is given in the second step.
Q: If we assume that Coke and Pepsi are substitute products, what would happen to the supply and demand…
A: Answer -
Q: If climate change impacts (e.g., increased heat waves, droughts, wildfires, etc.) decrease the…
A: The Solow model is an economic growth model that examines the change in the output level in an…
Q: ager is considering the following two quotes from two vendors for purchace and maintanance of an lor…
A: *Answer: For Vendor Y , one should use the Annual real interest rate of 8% as the discount rate…
Q: The following is production data: Orange Orange Toaster Toaster Waffles Waffles Year (Quantity)…
A: PLEASE FIND THE ANSWER BELOW.
Q: Why do we not rely on competitive markets to supply us with the "correct" quantity of money?
A: Money supply is regulated by the reserve bank or the central bank of any nation and is used for…
Q: How does perfect competition lead to allocative and productive efficiency? Perfect competition leads…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Does maximizing the value of the firm come at the cost of the CSR program? When forming your…
A: The major aim of any organization is making a profit.
Q: DBS Builders Pte Ltd purchased an asphalt paver eight years ago for $280,000. The estimated…
A: To make a replacement decision we need to compare the EUAC of old asphalt for the years it can be…
Q: The total cost of a milling machine is P865821 including taxes and it can last up to 8 years. What…
A: Sum of Years Digits (SYD) FormulaSYD = sum of years digit = 1 + 2 + ... + n = n(1 + n)/2. The…
SUBJECT:
Show the complete solution. The final answer is given below.
Q3. Eideas signed a contract to lease a building at P60,000 a year with an annual increase of P1,000 a year for 5 years. Payments are to be made at the end of each year, starting one year from now. If money is worth 8%, what lump sum paid today is equivalent to the 5-year lease-payment plan?
Answer: P=246,935.03
Step by step
Solved in 2 steps
- 2.5. An electric cooperative is considering the use of a concrete electric pole in the expansion of its power distribution lines. A concrete pole costs P18,000 each end will last 20 years. The company is presently using creosoted wooden poles which cost P12,000 per pole and will last 10 years. If money is worth 12 per cent, which pole should be used. Assume annual taxes amount to 1 per cent of first cost and zero salvage value in both casesG&M Motors is currently an all equity financed firm. It expects to generate EBIT of $30 million over the next year. Assume that G&M Motors’ EBIT is not expected to grow in the future and that all earnings are paid out as dividends. Currently G&M has 10 million shares outstanding and its stock is trading at $40.00 per share. G&M is considering changing its capital structure by borrowing $100 million at an interest rate of 2% and using the proceeds to repurchase shares at its current price ($40.00 per share). Assume perfect capital markets. After the re-capitalisation, G&M ʹs earnings per share (EPS) and the equity cost of capital are closest to: A. $2.90 and 14.55% B. $3 and 7.5% C. $3.73 and 9.3% D. $2.8 and 10.8%n Project A Project B 0 -$7,000 -$5,000 1 -$2,500 -$2,000 2 -$2,000 -$2,000 3 -$1,500 -$2,000 4 -$1,500 -$2,000 5 -$1,500 -$2,000 6 -$1,500 -$2,000 7 - -$2,000 8 - - Suppose projects A and B are mutually exclusive. The required service period is 8 years and comparable equipment will be leased for $3,000 per year payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15%? Use PW(15%) criterion and show your equation with numbers plugged into factors and your numerical result for each option.
- Use Excel to solve this problemAn elevator company has redesigned their product to be 50% more energy efficient thanhydraulic designs. Two designs are being considered for implementation in a newbuilding.Ten years ago, Johnson Recovery purchased a wrecker for $330, 000 to move disabled 18-wheelers. He received a salvage value of $25, 000 after 10 years of use. During this 10-year period, his average annual revenue totaled $60, 000. a) Did he recover his investment at 12% per year return? In other words, does the Annual Equivalent Value of the benefits exceed the Capital Recovery cost at an interest rate of 12%? b) Suppose Johnson moves, on average, 250 disabled 18-wheelers each year. What is his average equivalent benefit/cost per vehicle moved? c) Now, incorporate annual operating and maintenance costs into your analysis. If the annual O&M cost was $5, 000 the first year and increased by a constant 10% per year, what is the annual equivalent worth at 12% per year?A construction firm contemplating the purchase of construction equipment which has a choice between two different models. Equipment A will cost P 725, 050 while Equipment B will cost P 700, 500. The repairs required for each machine are as follows: Equipment A: P 10,000 at the end of 5th year. P 25,500 at the end of 10th year. Equipment B: P 34,500 at the end of 9th year. The machines are alike in all aspects. If this firm is earning 7.25% return in its capital, which equipment should be purchase? And what is the net savings? Justify your answer.
- The following pair of assets differ only in the MARR. The problem asks you to determine the effect of this difference on the economic life and to explain the result. All assets decline in value by 20 percent of current value each year. Installation costs are zero for all assets. Further data concerning the four pairs of assets are given in the table that follows. Asset First Cost Initial Operating Cost Rate of Operating Cost Increase MARR A $120,000 $30,000 12.5% 5% B $120,000 $30,000 12.5% 25% a. Determine the economic lives for assets A and B. The economic life of asset A is (enter your response here) years, and the economic life of asset B is (enter your response here) years. b. Create a diagram showing the EAC(capital), the EAC(operating), and the EAC(total) for assets A and B. c. Explain the difference in economic life between A and B.A civil engineer presently receives a monthly salary of P80,000.00. His invested savings earn 14%. Ever inspired by the adage “it is better to be a head of a rat than to be a tail of a lion,” he entertained an alternative investment whereby he expected to realize a 20% return on investment and which at the same time shall comparatively assure him the enjoyment of his present perks benefits. Such alternative investment involves the procurement of various equipment and the manufacture of new construction materials. The following are the relevant yearly projected data: Total Revenue ----------------------------------------P10,000.000 Total Depreciation --- P 1,000,000.00 Raw Materials --- 3,300,000.00 Labor Costs --- 1,500,000.00 Other Expenses --- 1,200,000.00 Should he pursue the Alternative?…Additional Information: Another company has offered to purchase the Bayou contract from TWW and to assume responsibility for all current and future liabilities. If TWW sells the contract, it would initially receive $200 million for the sale, but there is a 50% chance that "bad press," human capital recruiting challenges, and distrust among potential customers and government regulators would cost it $500 million in future business opportunities. Furthermore, the bats would still be at risk if the new owner of the contract proceeds with construction. Choice a: Do nothing and proceed with the project as originally planned. Choice b: Sell the project. Choice c: Shut down the project. Pick a choice, either a, b, or c. Use the following questions to explain your decision. Answer the question as the Government Representative, Mayor's Office 1. How may the supply and demand of local real estate be impacted by these decisions? 2. How may the market price of local real estate be…
- Additional Information: Another company has offered to purchase the Bayou contract from TWW and to assume responsibility for all current and future liabilities. If TWW sells the contract, it would initially receive $200 million for the sale, but there is a 50% chance that "bad press," human capital recruiting challenges, and distrust among potential customers and government regulators would cost it $500 million in future business opportunities. Furthermore, the bats would still be at risk if the new owner of the contract proceeds with construction. Choice a: Do nothing and proceed with the project as originally planned. Choice b: Sell the project. Choice c: Shut down the project. Use the following questions to explain your decision. Answer the question as the Government Representative, Mayor's Office 1. How may the supply and demand of local real estate be impacted by these decisions? 2. How may the market price of local real estate be impacted by these decisions? 3. May the…A man is considering putting up his own enterprise, where an investment of 800,000 will be required and will take 15 years to recoup. He estimates his annual sales at 800,000 along with the following operating costs. Materials =160,000/ yearLabor = 280,000/ yearOverhead = (40,000 + 10% of sales)/ yearSelling Expense = 60,000/ yearThe man will give up his regular job paying 216,000 Php per year and devote all his time to the operation of his business, this will result in decreasing his labor cost by 40,000 per year, material cost by 28,000 per year and overhead cost by 32,000 per year. If the man expects to earn at least 20% of his capital, should he invest? Solve using a) Rate of return method b) annual worth method c)present worth method d)equivalent uniform annual cost methodSUBJECT: ENGINEERING ECONOMICS Show the complete solution. The final answer is already provided. Q3. Edeas signed a contract to lease a building at P60,000 a year with an annual increase of P1,000 a year for 5 years. Payments are to be made at the end of each year, starting one year from now. If money is worth 8%, what lump sum paid today is equivalent to the 5-year lease-payment plan? Answer: P=246,935.03