Suppose your company is considering three health insurance policies. The first policy requires to tests and covers all preexisting illnesses. The second policy requires that all covered employees test negative for the HIV virus. The third policy does not cover…
Description of price elasticity of supply Suppose the supply for good x is estimated by the following equation: Q(x) supplied = 4 + 0.8P(x) – 0.2P(x)expcted – 0.4W Where;Q(x) supplied = quantity supplied of xP(x) = current average good of…
Demand Curve and Price Elasticity A radio station that goes by the name KRDY-FM is contemplating a T shirt advertising promotion. Monthly sales data from T shirt shops marketing the “Listen to KRDY-FM” design indicate that the demand curve for…
1. An investment scheme pays $200 at the end of each of the next 4 years, $400 at the end of year 5, $300 at the end of year 6 and $500 at the end of year 7. Given that…
The Sunny Valley Wheat Cooperative is considering the construction of a new silo. It will cost $124,000 to construct the silo. Determine the payback period if the expected cash inflows are $16,000 per year. (Enter the final answer to 2…
Calculate the present value of an annual receipt of 16,000 over the next 12 years, discounted at a 14% rate of return?
Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company’s geologist, has just finished his analysis of the mine site. He has estimated that the mine would be more…
a. Suppose you purchase an asset on September 1, 2009 that pays 5000 YTL on August 31, 2014. Assume that the interest rate for the first two years of the asset’s life is 7% while during the final three years…
Calculate the present value of the following cash flows, rounding to the nearest dollar:a. A single cash inflow of $12,000 in five years, discounted at an 11% rate of return.b. An annual receipt of $16,000 over the next 12 years,…
Price Leadership. Biking Magazine is a dominant price leading firm. Wheel Deal and Free Wheel are competing magazines. Biking: TCb = $17500 – 0.50Qb + $0.000005QB2; MCb = ΔTCb/ΔQb = -$0.50 + $0.00001QbWheel Deal: TCw = $15000 + 2Qw +…
