1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
PolarNik [594]
3 years ago
6

In an effort to reduce pipe breakage, water hammer, and product agitation, a French chemical company plans to install several ch

emically resistant pulsation dampeners. The cost of the dampeners today is €125,000, but the chemical company has to wait until a permit is approved for its bidirectional port-to-plant product pipeline. The permit approval process will take at least 2 years because of the time required for preparation of an environmental impact statement. Because of intense foreign competition, the manufacturer plans to increase the price only by the inflation rate of 4% each year. Determine the cost of the dampeners in 5 years in terms of (a) then-current euros and (b) constant-value euros?
The cost of dampeners in terms of then-current euros is_________ € .

The cost of dampeners in terms of constant-value euros is______ € .
Business
1 answer:
Genrish500 [490]3 years ago
8 0

Answer:

a)  €152081.6128

b)  €125000

Explanation:

a) The cost of dampners in terms of then-current euros :

current cost x(1 + inflation rate)ⁿ where n is the number of years.

Since the price of dampners is expected to increase only by 4% per year from the current price of €125,000 in 5 years:

We calculate : 125000 (1+0.04)⁵ = €152081.6128

The cost of dampeners in terms of then-current euros is €152081.6128

b) The cost of dampners in terms of constant value will remain as at today's current price if the value of Euros remains constant . Therefore, The cost of dampeners in terms of constant-value euros is €125,000.

You might be interested in
Suppose you consider buying a bond promising to pay you $25 one year from now and then the same amount every year through the fi
Archy [21]

Answer:

$3,667.44

Explanation:

The amount you would be willing to pay today can be determined by finding the present value of the cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 4 = $25

Cash flow in year 5 = $25 + $5000

I = 7%

Present value = $3,667.44

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

6 0
3 years ago
Baker loses the trial. baker's attorney can make a motion for
Eduardwww [97]
He can make a motion for <span>a judgment not withstanding the verdict. 
This motion can be use to render the decisions  made by the jury during the trial. This require the judge to withstand the decision notwithstanding the jury findings and give enough time for the attorney and the team to plan the next move for baker.</span>
5 0
3 years ago
Which of the following are true if you pay only the minimum amount each month towards your credit card bill?
Stels [109]
You will have a higher interest and will be in debt for longer
6 0
3 years ago
Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessful search.
Softa [21]

Answer: TRUE

Explanation: Discouraged workers are that portion of the population in an economy who have legal age for employment and also wants to get employed but due to long term of unemployment have now stopped looking for it.

Due to repetitive failures in attempt of seeking employment, this section of labor force gets discouraged and is not considered while evaluating unemployment rate in an economy.

7 0
3 years ago
We assume that when a firm hires additional workers, the marginal physical product of labor will:
oee [108]
WE assume that when a firm hires additional workers, the marginal physical product of labor will decrease. Why? Because more people will be added in a certain firm. Thus the resources will be divided to more people now and the money will also be divided to them
3 0
3 years ago
Other questions:
  • SilverFinn makes high-end jewelry for women. This jewelry is manufactured and patented in Italy. Manufacturers in Argentina crea
    14·1 answer
  • Compute the present value of​ $46,000, invested for six years at​ 8%. Present value of​ $1: ​5% ​6% ​7% ​8% ​9% 3 0.864 0.840 0.
    10·1 answer
  • Gwen, an independent consultant, traveled to New York City on a business trip. Gwen spent 4 days in business meetings and confer
    5·1 answer
  • Bryon operates a consulting business and he usually works alone. However, during the summer Bryon will sometimes hire undergradu
    13·1 answer
  • When a u.s. company purchases and imports electronic parts from china to use to produce mp3 players within the united states, th
    5·1 answer
  • At the end of the current period, Maltese, Inc. reports the following amounts: Assets = $52,300; Liabilities = $21,100; Dividend
    9·1 answer
  • Hartley Psychiatric, Inc., needs to purchase office equipment for its 2,000 drive-in therapy centers nationwide. The total cost
    11·1 answer
  • The marginal revenue product schedule is: * 1 point A) the same whether the firm is selling in a purely competitive or imperfect
    11·1 answer
  • It is enough to describe the proposed business as a sole proprietorship in the business description
    14·2 answers
  • If the authorized sources do not provide sufficient guidance, you should:
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!