I want some assistance in solving this net problem question. I Any assistance will be appreciated. Prices for new components cost $50.
Thus, P=MR=$50. Marginal costs MC=10+0.003Q and Total Costs TC=78,000+18Q+.002Q^2(this means the Q is squared).
A new building will cost $100,000. A company is trying to determine if the building is a good investment. What is the net present value? The interest rate is 5% and and the growth rate is 3%. Assume a 10 year period. Should the company buy?
Do you have an equation to help solve this and a solution?