What is the value of a perpetuity of P100 per year if the discount rate is 5%, 7%, 11%? Answer: P value if 5% = P2,000.00, P value if 7% = P1,428.57, P value if 11% = P909.09
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SUBJECT:
(a) Identify the Given and the Unknown or what is being asked in the problem
(b)Provide the formula to be used
(c)Show the complete solution. The final answer is already provided.
What is the value of a perpetuity of P100 per year if the discount rate is 5%, 7%, 11%?
Answer: P value if 5% = P2,000.00, P value if 7% = P1,428.57, P value if 11% = P909.09
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- In a licensing agreement, what type of property is transferred to the licensee by the licensor? Question 10 options: 1) Real property 2) Tangible property 3) Intangible property 4) Comparative propertyWhich of the following stnLcmcnts is not one of the four fundamental principles of engineering economics?(a) Receiving a dollar today is worth more than a dollar received in the (future.(b) To expect the highest return on investment, you need to take a higher risk.(c) Marginal revenue must exceed the marginal cost to justify any production.(d) When you are comparing different alternatives. you must not focus only on differences in alternatives.Q. 3 Large projects, such as a new tunnel under the Hudson, the Big Dig in Boston, the Denver airport, a new military jet, and a natural gas pipeline from Alaska to the Midwest, often take 5 to 15 years from concept to completion. Should benefit and cost estimates be adjusted for the greater influences and impacts of inflation, government regulatory changes, and changing local economic environments? Why or why not? How does the public budget-making process interact with the goal of accurate benefit and cost estimating for these large projects?
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