Vebco Water and Gas received a contract for a seawater desalination plant wherein the company expected to make a 28% rate of return on its investment. (a) If Vebco invested $8 million the first year, what was the amount of its profit in that year? (b) What amount would have to be invested to realize the same monetary amount of return if the rate decreases to 15% per year?

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A: Answer is given below

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A:

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A: The time period is 43 years, interest rate is 10%. P denoted the present value.

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A:

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A:

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A: Perpetual income = $10,000 Interest rate = 10%

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A: Ans Solution

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A: Future value can be calculated as follows:

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A:

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A:

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A: Present value can be calculated as follows:

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A: Amount = $50,000 Interest = 4500 after one year,

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A:

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A: Given, Principal amount- p1000000 ROI- 13% Time- 5 years

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A: Given:Future value (FV)=$36000r=8%n=1 year

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A: The interest rate on loan is calculated as follows.

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A: Simple Interest refers to the money paid only on the principal amount, money invested or money that…

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A: Here, it is given thatCost average for first four years = $200 per completed unitCost average…

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