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A bauxite mine can be purchased for $20,000,000 and is expected to yield $5,300,000 annually for the next 20 years. After that, the mine is closed and $4,000,000 will be required to restore the site
An investor deposits $30,000 annually at the end of each year for the next 15 years. At the end of the 16th year he starts to withdraw a geometric series of 20 annual payments, each 5% larger than t
Gasoline costs $0.95 per liter and will increase at 6% per year. At a fuel economy of 9km/liter, what is the present worth cost of fuel for five years of driving 30,000km per year Use 6.2% interest.
A delivery truck costs $30,000 and has a salvage value of $5,500 after 6 years. Maintenance and operating costs are $8,500 for the first year and are expected to increase at 6% per year. What is the
During the summer of 1997, Congress and the president agreed on a budget package to balance the federal budget. The "deal," signed into law by President Clinton in August as the Taxpayer Relief Act
to pay for college, you have just taken out a $1000 gov. loan that makes you to pay $126 per year for 25 years. however, you don't have to start making the payment until you graduate from college tw
Suppose a country can produce a maximum of 10,000 jumbo airliners or 2,000 aircraft carriers. a. What is the opportunity cost of an aircraft carrier b. If another country offers to trade six planes fo
if the interest rate is 10%, what is the present value of a security that pays you $1100 next year, $1210 the year after, and $1331 the year after if the security sold for $3500, is the yield to mat
You enroll in a thrift plan in which you are allowed to contribute 8% of your pretax salary per year. The company contributes an additional 6%. Your starting salary is $62,500 and you can expect ann
A geometrically increasing series of 20 end of year payments is deposited to fund an account. The first payment is $20,000, the geometric factor is 4%. The account is used for retirement purposes an
A $40,000 investment you made yields annual payments of $22,000, $14,000, $17,000, $25,000, and $38,000 at the end of the next 5 years respectively. Calculate the rate of return represented by this
What did the Federal Reserve do during the financial crisis of 2008 and 2009 How did the recent financial crisis affect the financial services industry What are some of the major provisions of the W
Some large hardware stores such as Home Depot boast of carrying as many as 20,000 different products in each store. What motivated the producers of those individual products to make them and offer t
An economist has predicted that for the next 5 years inflation will be 8%, and then there will be 5 years at 6% inflation rate. This is equivalent to what average price change per year for the entire
On July 1, Sarah Engineer paid $600,000 for a commercial building and an additional $150,000 for the land on which the building stands. Compute the UCC at the end of year 2. CCA rate for buildings is
Manufacturing equipment was acquired for $12,000. Determine the undepreciated capital cost of this equipment after 3 years of depreciation using CCA depreciation as a Class 43 asset (CCA rate is 30%).
Some special handling devices can be bought for $12,000. At the end of 4 years they can be sold for $3,500. Determine the book value of the assets after 3 years of depreciation using SYOD.
Peter Minuit bought an island from the Manhattoes Indians in 1626 for $24 worth of beads and trinkets. The 1991 estimate of the value of the land on this island was $12 billion (1 billion = 109). Wh
a)Compute the equivalent annual inflation rate, based on the US Consumer Price Index, for the period 1981 (when CPI was 90.9) to 1986 (when CPI was 109.6) b)Using the equivalent annual inflation ra
The widget Industry in Anytown is a monopoly, controlled by Widget Corp. Its demand curve for the local market is given by P = 800 - 20 W Where W represents the number of widgets sold per period. The
Domino Sugar Is considering the purchase of Fisher Honey Co. for $100 million. Based on information obtained from 500 supermarkets around the country, when 1 lb. of Domino Sugar went o sale from $2.
Suppose a perfectly competitive firm has the short-run cost function C = 125 + q2. The associated marginal cost (MC) for this total cost funct ion is 2q.
A firm is considering two alternative projects. Project A needs an investment of $800,000. Project B needs an investment of $750,000. Relevant annual cash flow data for the two projects over their e
Assume you have a Normal distribution representing the likelihood of completion times. The mean of this distribution is 10, and the standard deviation is 3. The probability of completing the project
The cost of shipping steel to the nearest buyer would be $20 per ton. In the meantime, a business next door just went bankrupt and the bank is offering a special deal where you can buy another 100 t