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Marta_Voda [28]
3 years ago
5

Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near ter

m. He anticipates his first annual cash flow from the technology to be $180,000, received two years from today. Subsequent annual cash flows will grow at 4 percent in perpetuity. What is the value today of the technology if the discount rate is 11 percent
Business
1 answer:
yuradex [85]3 years ago
8 0

Answer:

the present value for today is $2,316,602

Explanation:

The computation of the technology value today is shown below:

Present value of the technology is

= (First annual cash flow arisen from the technology) ÷ ( discount rate - growth rate) ÷ (1 + discount rate)

= ($180,000) ÷ (11% - 4%) ÷ (1 + 0.11)

= $2,316,602

Hence, the present value for today is $2,316,602

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A firm with unlimited funds must evaluate five projects. Projects 1 and 2 are independent and Projects 3, 4, and 5 are mutually
neonofarm [45]

Answer:

4, 1, 2,

Explanation:

Here are the projects and their returns

Project Return (%)

1 14

2 12

3 10

4 15

5            12

the firm should choose the project with the highest returns

Projects are mutually exclusive if the projects cannot occur at the same time. If one project is chosen, the others cannot be chosen.

Project 3,4,5 are mutually exclusive. If one of the projects are chosen, other projects cannot be chosen.

Project 4 has the highest return, so it would be chosen first.

the next project with the next highest return is project 1 and then project 2

3 0
3 years ago
Assess the benefits and drawbacks of the high-speed rail project. In your opinion, do benefits outweigh drawbacks, or vice versa
Andrews [41]

Answer:

The benefits of a High Speed Rail in California:

  • It becomes a feasible alternative to air travel, because it can be either cheaper, or even faster, since passengers do not have to spend as much time on a train station as they do on an airport.
  • If demand is high enough, state highways can become less congested, because many people who would otherwise travel by car, would take a high speed train instead.
  • Because the trains are electric, they are likely to help reduce pollution.

The cons would be:

  • We cannot know for sure how many people would take the high speed trains. Demand could not be high enough to justify the cost.
  • The line would be very costly.
  • It could end up benefit only a small section of the population who would take the trains, or who travel often.

I believe that the benefits outweigh the drawbacks, as can be seen in most countries where high speed lines have been made between large cities. For example, in Spain, the line between Madrid and Barcelona is profitable. The same would likely happen for a line between Los Angeles and San Francisco.

What are the implications of starting a project based on tenuous projections that may or may not come true 10 years from now?

If demand projections are tenous, there is always the possiblity that the high speed line could not be profitable. However, this risk can be lowered if the line is made between highly populated cities.

Could you justify the California high-speed rail project from the perspective of a massive public works initiative?

Yes, a high speed rail would be a project that could massively impact California. The benefits of its operation could outweight the cost.

In other words, what other factors enter into the decision of whether to pursue a high-speed rail project?

As I said before, the most important factor is to construct line between highly populated cities in order to reduce the risk of not having enough demand. It has been demonstrated around the world, in Spain, in Italy, in Japan, in China, that high speed lines that connect very populated regions, can be profitable.

7 0
3 years ago
A normal good is defined as one:
AlexFokin [52]

Answer:

The correct answer is letter "D": the consumption of which varies directly with incomes.

Explanation:

Normal goods are those with quantities demanded increasing when consumers' income increases. Quantity demanded and increase have a directly proportional relationship. Consumer staples such as foods, drugs, and fuel are considered normal goods.

<em>The opposite of normal goods are inferior goods which have decreasing quantities demanded in front of increases in consumers' income.</em>

5 0
3 years ago
Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summ
marin [14]

Answer:

Net Sales

Gross Revenue                                           $‭101,200

Less:

Sales Discount                         $288

Sales Returns                          <u> $1,000 </u>      <u>  $1,288</u>

Net Sales                                                      $‭99,912‬‬

Gross revenue  = 83,200 + 18,000 = $‭101,200‬

Gross Profit

Net Sales                                                      $‭99,912‬

Less: Cost of Goods sold                           <u> ($‭52,747‬)</u>

Gross Profit                                                  $‭‭47,165‬

Cost of goods sold

= 44,797 - 600 + 8,550

= $‭52,747‬

7 0
3 years ago
Blanche Corporation adds materials at the end of the process in the injection department, which is the second of two stages of i
inn [45]

Answer:

The material cost of the work in process at March 31 is d. $0

Explanation:

Note: Equivalent unit of Work in process of Material is 0 as material are added at the end of process which leads to total cost of material of work in proccess = 0.

3 0
3 years ago
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