2. Consider the model from class showing the stock of a recyclable resource. Suppose that there are three future periods (t = 1, 2, and 3) during which the resource will be extracted for use. The initial stock (So) of the variable is 500 units, and it is optimal to extract 10 units in the first period, 20 units in the second, and 30 units in the third. Furthermore, 70% of the amount extracted each period is recycled back into the available stock. At the end of the third period, how much of the resource will be available?

2. Consider the model from class showing the stock of a recyclable resource. Suppose that there are three future periods (t = 1, 2, and 3) during which the resource will be extracted for use. The initial stock (So) of the variable is 500 units, and it is optimal to extract 10 units in the first period, 20 units in the second, and 30 units in the third. Furthermore, 70% of the amount extracted each period is recycled back into the available stock. At the end of the third period, how much of the resource will be available?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

(c) Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation.) (Round answers to 2 decimal places, e.g. 10.50%.) Annual rate of return Project Bono % Project Edge % Project Clayton %
TLT Ltd is considering the purchase of a new machine for use in its production process. Management has developed three alternative proposals to help evaluate the machine purchase. Only one of these proposals can be implemented. Proposals A and B both have the same cost to set up, but the output from proposal A (as measured by future net cash flows) commences at a high rate and then declines over time, while Proposal B starts at a low rate and then increases over time. Proposal C involves buying two of the machines considered under proposal B. That is, proposal C is simply Proposal B scaled by a factor of two. Proposal C results in net cash flows which are similar in magnitude to proposal A's net cash flows in the first two years. The estimated net cash flows, internal rates of return and net present values at 9% and 11% for each proposal are given in the following table. Proposal A -$290,000 $100,000 $90,000 Proposal B -$290,000 $40,000 $50,000 Proposal C -$580,000 $80,000 $100,000 End…
(a) A project management consultant estimated that if a particular project was completed, t years after completion, N thousand persons would benefit directly from the project, where N(t) = 4.5t2 + 16t, 0st< 10 For what value of t, will the largest number of people receive direct benefits?
(a) Calculate the payback period for each project. (b) Calculate the net present value (NPV) for each project. (c) Calculate the profitability index of each project. (d) Explain to the company which project should be implemented. Support your answer.
Internal rate of return and modified internal rate of return For the project shown in the following table,, calculate the internal rate of return (IRR) and modified internal rate of return (MIRR). If the cost of capital is 12.13%, indicate whether the project is acceptable according to IRR and MIRR. The project's IRR is %. (Round to two decimal places.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial investment (CF) Year (t) 1 2 3 4 5 Print $70,000 Cash inflows (CFt) $15,000 $25,000 $25,000 $15,000 $10,000 Done X
Problem 2: For the following data, find: (a) The profit expected if the project is finished in 26 days. (b) The maximum profit obtainable and the project duration associated with it, i.e., the optimum duration. Project Duration Minimum Direct Cost (S) 20 41,000 22 40,600 25 39,900 27 39,200 29 38,400 31 37,600 33 36,900 34 36,500 36 36,250 Bid = $48,000 Setup cost $1,000 Indirect cost = $250/day
This is the problem. I need to do cash flow diagram , PW cost for each vendor, and which vendor would choose.
This graph shows the net present value of an investment with annual cash flows of -$1,000, $100, $300, $400, and $675 as a function of different costs of capital (interest %). Note that this cash flow returns increasing amounts after the initial investment. Drag left or right on the graph to move the cursors to see the net present value (NPV) for different costs of capital. The point where the curve crosses the X-axis determines the internal rate of return (IRR). (Note: due to limited pixel resolution, it is sometimes difficult to get to that precise point.)
Suppose the Marginal Benefit and Marginal Cost for crude oil at any given period is: MB = 159 - 2.1Q and MC=36 + 0.9Q Where price is measured in dollars and quantity is measured in barrels. The total oil reserve is 100 tons. What will be the socially efficient quantity for period 1?
Suppose you have a project that will cost $800,000 last for ten years. The cash flows for each year have an expected value of $175,000 with a standard deviation of $20,000. The cost of capital is 10%. Use a Monte Carlo simulation with 1,000 replications to evaluate this project using the NPV and IRR approaches. USE EXCEL AND EXPLAIN EACH STEP
4. You have the expected cash flows for this machine as follows: Initial cost ($12,000), cash flow year 1 $5,000, year 2 $4,000, year 3, $ 6,000, year 4 $2,000. The required rate of return is 13%. The NPV is