The recovery of an amount of capital P committed to an asset, plus the time value of the capital at a particular interest rate, is a fundamental principle of economic analysis Select one: True O False
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A: problem is solved in step 2
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A: Rate of return is a certain percentage of income from an investment.
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A: A rate of interest is the expense of getting cash. Or then again, on the opposite side of the coin,…
Q: Describe the method for determining the length of time required to recover the cost of investment?
A: The cost of an investment includes charges for the purchase such as commissions, sales, and duties.…
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A: The principal would be the amount of money which is received at the end of the time period with the…
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A: Return on invested capital allows us to measure the efficiency of a firm or company at allocated…
Q: (b) Find the time path of capital (K, t), given the following rates of net investment flow…
A: Time path of capital growth is given by - K(t) = K(t -1) (1 - depreciation rate ) + I(t)
Q: What is the definition of internal rate of return (IRR)? If you expect the annual interest rates are…
A:
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Q: Define the term Net-Present-Worth Criterion?
A: Net present worth refers to the difference between the net present cash inflow and the net present…
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A: Present value is the value of future amount at present. We use the compound interest formula to…
Q: at t=0 is 100. Find
A: Given : Rate of net investment =50t2/3 Capital stock at t at 0 =100.
Q: Explain Incremental-Investment Analysis?
A: Incremental Investment analysis is a method used in business decision making to assess the true…
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A: Answer 1 Given Information Money spent till date = $ 500 million Money needed for FDA approval = $…
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A: The economics as a study is based upon the idea that the economies, or the societies around the…
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A: According to the question, A) We have to find the net present value of each of the three projects…
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A: Internal rate of return is the rate of return where Net present worth value is equal to 0. Thus,…
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A: The real rate of return on capital is calculated on the basis of the capacity utilization rate. It…
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A: Net present value, or NPV, is used to calculate the current total value of a future stream of…
Q: Suppose Cobb-douglus prodution function, yielded = 0.956875 and â = -1.38961 thus the log form…
A: logQ = -1.38961 + 0.956875 log K + 0.429457 log L
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A: The rate of interest would be determined by bargaining power. Bargaining power helps to determine…
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A:
Q: The internal rate of return (IRR) is the interest rate that sets the net present value (NPV) of the…
A: IRR helps in the analysis of various different investment decisions that the company has to make.
Q: discuss (with example) the criteria to determine capital or current expences
A: A current expense is the expense which reoccurs after a short period. A capital expense provides…
Q: Identify the one false statement about the internal rate of return. a. The IRR is also known as the…
A: The internal rate of return refers to the discount rate which is used to measure the profitability…
Q: (a) Find the time path of capital K(t) given the following rates of net investment flow functions…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Different projects, investments, or wholesale/retail activities may generate different streams of…
A: Investment: The term investment refers to the use or investing process in order to earn profit or…
Q: A vegetable producer is considering investing in an indoor hydroponic system. Which of the following…
A: In a market, lower discount rate implied less cost of borrowing money from the market.
Q: The payback period with interest is the length of time required to recover the first cost of an…
A: False Payback period is defined as the number of years it would take in recovering the funds with…
Q: How long it will take for the cost of the investment to be recovered from its benefits is referred…
A: Profitability might be an estimation of productivity – and at last its prosperity or disappointment.…
Q: If Bob invests $100,000 in Tesla stock and he earns 15,000, what is the rate of return of his…
A: Given , Investment = $100,000 Earnings = $15,000 Now, we have to calculate the rate of return.
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- The fact that one should not add or subtract money unless it occurs at the same point in time is an illustration of what concept?a. Time value of moneyb. Marginal return c. Economy of scale d. Pareto principlewhy we shouldn't use "specific to general approach" of augmentation order p in econometrics? what problems it causes in application?Consider the production function Q = 0 + 6L + 5L2 - .2L3. The range of labor covering Stage II of production is ____ to ____. You can use a spreadsheet to answer this question. A. 6 to 12. B. 12 to 20. C. 26 to 34. D. 36 to 45. E. 48 to 56.
- Sally Statistics is implementing a system of statistical process control (SPC) charts in her factory in an effort to reduce the overall cost of scrapped product. The current cost of scrap is $X per month. If a 75% learning curve is expected in the use of the SPC charts to reduce the cost of scrap, what would the percentage reduction in monthly scrap cost be after the charts have been used for 6 months? (Hint: Model each month as a unit of production.)Find the Total Cost function as a function of q, c, d. A. w and r; and graph it in relationship to q in excel The idea is to solve the following input minimization problem ina general manner: minTC(K, L ) = wL+ rKs. t. q = AK^CL^d Make sure to set - up your spreadsheet by identifying the optimization problem, the endogenous variables, the exogenous variables and the constraint. Make sure also to show a cell that computes TRS and another that computes -w/r.Define the term two-phase method?
- Consider the following decomposition of the error term: v i t = a i + u i t The first part of this error term (ai) caputres ______and the second part (uit) caputres______. time constant unobserved factors, time varying unobserved factors time varying unobserved factors, time constant unobserved factors homoskedasticity, heteroskedasticity heteroskedasticity, homoskedasticityAlternative Measures of Productivity A common measure of productivity, as explained in thischapter and as used by many business and trade organizations, including the U.S. Bureau of LaborStatistics, is the ratio of output to input, where input is typically measured in units of materials, laborhours, or related measures. An alternative is to use the ratio of capacity available to capacity utilized. For example, the amount of capacity in the U.S. manufacturing industries has almost doubledover the past two decades. However, the rate of capacity utilization (output/capacity available) hasfallen slightly over this period of time, with a steep drop in 2009 followed by slow increases in 2010and 2011. Some would say that this measure gives a better picture of productivity than the one wehave used in the chapter.Required Compare the measure of productivity based on capacity utilization with the measure used inthe chapter. Which measure do you think is most useful for assessing the state of the…In your own words, describe the life-cycle cost concept. Why is the potential for achieving life-cycle cost savings greatest in the acquisition phase of the life cycle?