California's current population is 36.5 million people and its population is expected to grow by 2% annually. How long will it take for the population to double?
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- Suppose California’s population is 30 million people, and its population is expected to grow by 2% per year. How long would it take for the population to double? Show the Excel Wizard FormulaInputs: PV = -30 FV = 60 I/YR = growth rate 2% N = ? Wizard (NPER): = _____ Years to double.The table here,, gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.20% of the market share in 2022 and expects that percentage will increase by 0.23% per year. KMS currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? The Tax Cuts and Jobs Act of 2017 temporarily allowed 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems. KMS's market share for 2022 is Data table units. (Round to the nearest integer.) (Click on the following icon in order to copy its contents into a spreadsheet.) Year Production Volume (000 units) Market Size Market Share 2022 2023 2024 2025 2026 2027 10,000 10.20% 10,350 11,036 11,593 12,130 12,762 10.43% 10.66% 10.89% 11.12%…MEINE ON The table below gives a detailed forecast of the size of the market by production volume. Assume that KMS expects to capture 10.20% of the market share in 2019 and expects that percentage will increase by 0.27% per year. KMS currently has the capacity to produce a maximum of 1,100,000 units. What production capacity will KMS require each year? When will an expansion become necessary (that is, when will production volume exceed 1,100,000 units)? Year Production Volume (000 units) Market Size KMS's market share for 2019 is KMS's market share for 2021 is KMS's market share for 2022 is 2019 KMS's market share for 2023 is 10,412 11,570 The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. KMS's market share for 2024 is 2020 10,000 units.…
- OpenDoor Cafe is considering opening a new food court in a major US city. The initial investment is expected to be $11,550,000. The projected cash flows are $3,410,000 in years one and two, $2,220,000 in year three, $1,990,000 in year four, and $4,485,000 on year five. What is this project's internal rate of return? 18.03% 10.61% 12.70% 6.95%A company is considering two potential projects. Project Alpha requires an investment of 1,000,000 and will return 185,464.74 per year at the end of each of the next six years. It has an IRR of α%. Project Beta requires and investment of 860,725 and will return 300,000 at the end of year one and 600,000 at the end of year two. It has an IRR of β%. Calculate α-β.A project worth 100 million today can be taken at a costs of 88.24 million. Now suppose the investment option does not expire today, but rather will exist another year. Further, suppose that it is reasonable to expect that, if we wait until next year, there is 70% chance that the market will improve and the same project would be worth $ 113.21 million. On the other hand there is 30% chance that market will decline, which will result in a value of only 78.62 million. In either case, the project cost will increase by 2%. Assume that risk free rate is 3% and required rate of return on this project is 9% per annum. Answer the following questions based on this information. (1) When would you like to invest in the project (now or next year)?
- Suppose natural gas experiences a 1.8% increase per year in real terms over the foreseeable future. The cost of a 1,000 cubic feet of natural gas is now $7.50. Solve, a. What will be the cost in real terms of 1,000 cubic feet of natural gas in 22 years? b. If the general price inflation rate (e.g., the CPI) for the next 22 years is expected to average 3.2% per year, what will a 1,000 cubic feet of natural gas cost in actual dollars 22 years from now?Towson Industries is considering an investment of $256,950 that is expected to generate returns of $90,000 per year for each of the next four years. What is the investment’s internal rate of return?The table below gives a detailed forecast of the size of the market by production volume. Assume that KXS expects to capture 10.20% of the market share in 2018 and expects that percentage will increase by 0.24% per year. KXS currently has the capacity to produce a maximum of 1100 thousand units. What production capacity will KXS require each year? When will an expansion become necessary (that is, when will production volume exceed 1100 thousand units)? Year 2018 2019 2020 2021 2022 2023 Production Volume (000 units) Market Size 10,000 10,453 11,048 11,591 12,151 12,728
- Consider a project to supply 102 million postage stamps per year to the U.S. Postal Service for the next five years. You have an idle parcel of land available that cost $1,715,000 five years ago; if the land were sold today, it would net you $1,790,000 aftertax. The land can be sold for $1,750,000 after taxes in five years. You will need to install $5.45 million in new manufacturing plant and equipment to actually produce the stamps; this plant and equipment will be depreciated straight-line to zero over the project's five-year life. The equipment can be sold for $655,000 at the end of the project. You will also need $585,000 in initial net working capital for the project, and an additional investment of $52,000 in every year thereafter. Your production costs are .50 cents per stamp, and you have fixed costs of $1,070,000 per year. If your tax rate is 23 percent and your required return on this project is 8 percent, what bid price should you submit on the contract? Note: Do not round…The Steel Factory is considering a project that will produce annual cash flows of $43,800, $40,200, $45,700, and $41,800 over the next four years, respectively. What is the internal rate of return if the initial cost of the project is $127,900?Towson Industries is considering an investment of $256,950 that is expected to generate returns of $90,000 per year for each of the next four years. What Is the Investments internal rate of return?

