Answer:
Explanation:
13 years would be a time in the future hence you use future value formula.
Future value formula is FV = PV*(1+r)^n
r = interest rate; in this case it is the semiannual rate = 0.049/2 = 0.0245 as a decimal.
pv = principal amount invested = 7,500.00
Duration of investment; in this case, number of semi-annual periods = 13*2 = 26
The expression would be ; 7500(1.0245)^26
Answer:
(a) What is the net present value of this potential investment?
Net present value of Investment is $(3,903)
(b) Should you invest in this machine?
We should not invest in this investment because Net present value of this investment is negative by discounting Minimum acceptable rate of return.
Explanation:
Present Values:
Revenue $144,146
O&M Cost ($48,049)
Initial Investment <u>$(100,000)</u>
Net Present value $(3,903)
Working :
Present Value Calculation = P x ( (1- ( 1 + r )^-10) / r
Revenue = $21,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 144,146
O&M Costs = $7,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 48,049
Answer:
Congress votes to double the amount of federally subsidized student loans - this will increase the equilibrium level of human capital investments because higher education is one of the most effective ways that people can use to increase their human capital.
There is a decrease in student learning capacities - decrease the equilibrium level of human capital investments because a lower learning capacity will prevent students from reaching their full potential.
Suburban families see a decrease in wealth due to a particularly poor performing sotck market - decrease because suburban families will have less income and wealth to spend, including expenditures in education and training.
The president signs into a law a bill that will reduce discrimination in the labor market - increase because workers that were previously kept from finding employment due to discrimination will now be able to obtain jobs and acquire working experience, this increases their human capital.
The natural talents and abilities of graduating high school students rise - increase because high school graduates have become more naturally skilled and this will help them through college and in their future jobs.
The intergroup hostility is particularly likely to occur
when there is a scarcity in terms of the material resources that are needed and
that when there is a presence of each members of the group to have different
types of valuing the material resources that is needed.
Answer:
Explanation:
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