Answer: smaller pipe
Explanation: for the first alternative that is constructing with bid size pipe which cost total of $115 million throughout the 50 years and a pumping cost which cost $25000 less than the smaller pipe for the next 16 years of which after those years, it will be equal.
While the smaller pipe cost $65million + $100million = $165million then plus the pumping cost which is equally higher than the big pipe cost . Already there is a difference in cost(minus pumping cost)= $165-115= $50million.
And then $25,000 *16 years= $400000 .
So the total difference in cost for the first 16 years is $50.4 million.
So now with interest rate of 8% you'll see that much capital is used in the smaller pipe , so if both pipe system receive interest rate of 8%, the smaller pipe will have more interest than the bigger.
Answer:
$181,818,181.82
Explanation:
The computation of the current value of this firm is shown below:
= (Firm expectation to earns in cash) ÷ (discount rate - increased cash earning percentage)
= ($10,000,000) ÷ (7.5% - 2%)
= ($10,000,000) ÷ (5.5%)
= $181,818,181.82
In order to find out the current value, we considered all the given information that are mentioned in the question
the optimal quantity of pizza slices for John to buy is 1.
<h3>Determining the optimal quantity </h3>
According to economics, the optimal quantity of a good that should be consumed is the quantity at which the marginal utility equals the marginal cost.
Marginal utility is the change in utility when consumption is increased by one unit. Marginal cost is the change in total cost when consumption is increased by one unit. The unit at which marginal cost is equal to marginal utility is 1.
To learn more about marginal utility, please check: brainly.com/question/16859357
Answer:
The answer is: liquidating dividend should be $62.07.
Explanation:
Let denote the amount of liquidating dividend to be X => The present value of liquidating dividend amount is X/1.1^4; given discount rate is 10% and liquidating dividend will be paid in 4 year times.
We have:
Present value of regular dividend stream + Present value of liquidating dividend = Current share price
=> (2.4/10%) x [1 - 1.1^(-4) ] + X/1.1^4 = 50 <=> X/1.1^4 = $42.39 <=> X = 1.1^4 x 42.392 = $62.07.
So, The answer is: liquidating dividend should be $62.07.
What happens to a monopolistically competitive firm that begins to charge an excessive price for its product? The firm will go out of business.
