beQuestion 2: Should a firm invest? (show all your work. Points will be deductedfor no work) (20 points)A firm learns a firm has an investment opportunity that will earn future revenue4 years from now by $160,000. The marginal cost of the physical capital todayis $125,000. The firm makes this investment at an interest rate of 5%. Usingthis information answer the questions below1. Should this frim make this investment?2. What is the discounted percentage for this investment?3. Other things being equal, could this investment be made a higher interestrate? Lower? Why, Show with numbers4. Other things being equal, could this investment be made for longer term?Shorter term? Why?, Show with numbers

Step 1: Calculate the Net Present Value (NPV)Formula: NPV = PV of Future Cash Flows - Initial…

Answered: be Question 2: Should a firm invest?…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5. Give an idea of the main costs involved in starting this business; minimum amount of resources need at start-up. a. Describe your income and expenditure flows: b. What ill be your major sources of income? c. What will be your major expenses d. How long do you think it will take for this business to start making profit? e. As part of the work, prepare a poster presentation that captures the key aspect of the entrepreneur, about his/her business, family, what drives him/her (Poster presentation should be creative and attractive)
Induced investment is made with the intent of producing a substantial output. a. producing a substantial output. b. marginal efficiency of capital with the rate of interest c. to meet the equilibrium of demand
NPV Calculate the net present value (NPV) for the following 12-year projects. on the acceptability of each. Assume that the firm has a cost of capital of 7%. a. Initial investment is $1,000,000; cash inflows are $ 160,000 per Year b. Initial investment is $2,500,000; cash inflows are $320,000 per Year Using Excel to answer. Show all Formulas
Quantity Price 0 $100 1 $90 2 $80 3 $70 4 $60 5 $50 6 $40 7 $30 8 $20 9 $10 10 $0 Marginal Cost $45 $40 $35 $30 $35 $40 $45 $60 $100 $180 Average Total Cost $80 $64 $52 $44 $40 $40 $52 $64 $80 $100
Question 7 A project involves an immediate expenditure of $2 000, and will require additional expenditures of $150 a year for the next ten years, starting one year from now. After ten years it yields an income of $8 000, but a year later a further expenditure of $1 000 will be required to close down the project. What is its rate of return? 9% 10% 11% 12% 13% Save
pls solve this ques I'll give you multiple upvotes.
need correct answer !!!!!! 1. If the market value of a firm registers consistent increase, we can reasonably conclude that ________________, (a) Marginal of capital is greater than the cost of capital (b) Tobin’s q measure is greater than 1 (c) Value of its stock is over priced (d) None of the above (e) (a) and (b)
2. A group of investors is planning to build an athletic equipment and apparel store in Saskatoon, close to a group of existing big box stores. The group spends $800,000 to buy the required land and to develop the parking lot. After completing these steps they terminate the project when they learn that another athletic store is going to be built close by. What option have the investors exercised? Three years later, the investors still own the land and improvements. How should they value these things if they decide at that time to complete the store as originally planned?
Need answer ASAP... Income retained in the firm is an example of ____ accounts a. asset b. profit c. liability d. owner’s equity
100-There are multiple stages in a business life cycle. Sometimes they generate higher return while sometimes they face losses due to some unexpected events like COVID-19. Accounting literature comes forward in support of business in the form of transferring amounts across the years to fil this gap for the moment. There is no doubt that this will be showing a very glowing picture from the business side but it can also be a. Misleading as the investor thinks very positive which is not true b. None of the options c. Better as the investor is expecting a positive return in the future perspective d. Leading to higher share price in the open market resulting in good corporate image
20) Can i get help with this question please
Edward the entrepreneur takes 2 hours to cut a lawn, and he cuts 1,000 lawns per year. He uses solar-powered equipment (truck and mower) that will last forever- and can be sold at any time for $40,000. Edward could earn $11 per hour as a pedicurist. The interest rate is 10 percent. Given his current output level, compute his average cost of cutting lawns. $20 $24 $22 $28 $26

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