According to the world health organization, the average human lifespan is expected to increase from 68 today to 81 in <span>n 2095-2100. The difference between the two ages is 13 years. The closest among the choices here is 15 years. The answer is a. The increased life expectancy is attributed to the decreased death rate due to HIV/aids.</span>
Okayyyyy that’s fine w me
Answer: The present value of the new drug is $19.33 million
We follow these steps to arrive at the answer:
Expected Revenues from the drug in year 1(P) $2 million
Growth Rate (g) 2% p.a.
No. of years (n) 17 years
Discount rate (r) 9% p.a.
Since the revenues are expected to grow at a constant rate of 2% p.a, we can treat this series of cash flows as a <u>growing annuity. </u>
We calculate the Present Value of a growing annuity with the following formula:
![PV = \frac{P}{r-g}*\left [ 1- \left (\frac{1+g}{1+r}\right)^{n}\right]](https://tex.z-dn.net/?f=PV%20%3D%20%5Cfrac%7BP%7D%7Br-g%7D%2A%5Cleft%20%5B%201-%20%5Cleft%20%28%5Cfrac%7B1%2Bg%7D%7B1%2Br%7D%5Cright%29%5E%7Bn%7D%5Cright%5D)
Substituting the values we get,
![PV = \frac{2}{0.09-0.02}*\left [ 1- \left (\frac{1+0.02}{1+0.09}\right)^{17}\right]](https://tex.z-dn.net/?f=PV%20%3D%20%5Cfrac%7B2%7D%7B0.09-0.02%7D%2A%5Cleft%20%5B%201-%20%5Cleft%20%28%5Cfrac%7B1%2B0.02%7D%7B1%2B0.09%7D%5Cright%29%5E%7B17%7D%5Cright%5D)
![PV = \frac{2}{0.07}*\left [1- 0.323558233\right]](https://tex.z-dn.net/?f=PV%20%3D%20%5Cfrac%7B2%7D%7B0.07%7D%2A%5Cleft%20%5B1-%200.323558233%5Cright%5D)


Answer:
$35,000
Explanation:
Data provided in the question:
Accounts Receivable at the start of the year = $6,000
Accounts Receivable at the end of the year = $9,000
Revenues for the period = $38,000
Now,
cash collected from the customers
= Beginning balance + Revenue for the year - Ending balance of account receivable
= $6,000 + $38,000 - $9,000
= $35,000
Answer:
![STC = 20K + 25L = 20*5 + 25*[\frac{Q^2}{25}] = 100 + Q^2](https://tex.z-dn.net/?f=%20STC%20%3D%2020K%20%2B%2025L%20%3D%2020%2A5%20%2B%2025%2A%5B%5Cfrac%7BQ%5E2%7D%7B25%7D%5D%20%3D%20100%20%2B%20Q%5E2%20)
Explanation:
We are given:
K units of capital and L units of labor.
•Each unit of capital cost = 20
• Each unit of labor cost =25
• Level K is fixed at 5 units
We are told production function Q = K√L
Using the production functions and the values given, we can get that Q=5√L.
To find Q, the amount of labor will be given as:

Therefore, the Short run total cost function (STC) will be:
![20K + 25L = 20*5 + 25[\frac{Q^2}{25}] = 100 + Q^2](https://tex.z-dn.net/?f=%2020K%20%2B%2025L%20%3D%2020%2A5%20%2B%2025%5B%5Cfrac%7BQ%5E2%7D%7B25%7D%5D%20%3D%20100%20%2B%20Q%5E2%20)