Problem 01-10 (algo)An owner can lease her building for $120,000 per year for three years. The explicit cost of maintaining the building is $40,000, and theimplicit cost is $55,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 8 percent, determinethe present value of the stream of:Instructions: Do not round intermediate calculations. Round your final calculation to two decimal places.a. Accounting profits.$217859.8b. Economic profits.$68081.20

1) Accounting Profit = Revenue-Explicit CostAccounting profit = 120,000-40000Accounting profit =…

Answered: Problem 01-10 (algo) An owner can lease…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Question 4 Part E: You have decided to invest in a project to build and run a production line for a friend. Your friend has specified that the production line needs to last forever, and will always be operational. The associated costs for the project are shown in the table below. How much should you charge your friend now for the production line in order to build and maintain the perpetual project? Interest rate is 6%. Costs Initial Cost Annual Operating & Maintenance Costs Amount $175,000 $10,000 $80,000 Year incurred Year O Per year, forever Major Maintenance Costs First in year 5, then every 5 years forever Question 4 Part E: Provide the cost for the project. Enter your answer in the form 123456
PLS HELP ASAP ON BOTH
Answer manually not by excel
A car dealership offers you no money down on a new car. You may pay for the car for 3 years by equal monthly end-of-the-month payments of $735 each, with the first payment to be made one month from today, If the discount annual rate is 17.45 percent compounded monthly, what is the present value of the car payments? Round the answer to two decimal places.
Question 2. Based on the following cash flow diagram, calculate the value of X with the interest rate of 10%. 150$ 150$ 15o$ 150$ 150$ 150$ 150$ 75$ 10 11 X= ?
Question A Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line..
4. You have developed an innovative new project that is estimated to produce an annual revenue stream (money in) of $15,000 per year for the next 10 years. Your current corporate cost of Money is 4%. However, in year 5, your CFO projects that rate will rise to 6% for the remaining five years of the project's lifespan. What is the NPV of this money in cashflow today? (we are ignoring any money out costs)
1)How many years will it take to pay off a$525debt, with monthly payments of$15at the end of each month if the interest rate is18%, compounded monthly? i)3.1667 ii)6.1667 iii)5.1667 iv) 4.1667 2)Company A has fixed expenses of$15,000per year and each unit of product has a$0.20product at a$0.50variable cost. At what number of units of annual production will Company A have the same overall cost as Company B? i) 14,286 units ii) 66,666 units iii) 33,333 units iv) 28,572 units 3)The Profit From the monthly sale of x tons of a product, in thousands of dollars, is given by the function:P(x)=−0.05x²+1.6x−3. The maximum possible profit is i)$11,800 ii)$9,800 iii)$12,800 iv)$10,800 i need above 3 three i will 10 upvotes plz urgent no use excel only typing.
Question 1 Due to health reasons, Dave is considering early retirement. He currently has $700,000 in a self- managed retirement fund. He thinks he will need S40,000 per year during retirement. He intends to invest his retirement in a low-risk mutual fund which return 1.5% per year. How many years can he live off this retirement fund without the need to look for a job?
Answer it by hands，please
8- Your credit score is in the range of 720-739 and you want to buy a house in Davis (CA). You have 20% down payment to put on a house that has a market value of $450,000. a) Use www.bankrate.com website to identify the bank with the most convenient APR for your 30- year fixed mortgage and accordingly calculate your annual payment. Ignore external and additional costs in your calculation that may vary from one bank to another b) After 20 years of annual payment, how much you should pay in lump sum to your bank to end up all your debts. Ignore penalties or any other additional cost c) According to your finance, your maximum annual payment for your mortgage cannot exceed $24,000. Under this condition, how much should be your minimum down payment for your mortgage?

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS