2. Find the present worth in year 0 (PT) for the cash flow diagram using aninterest rate of 10% per year.PT=?i=10%Actual yearUpp=457613 4 5 6 Series yearA=$4000 $2000PA=?89

Present value refers to the sum of money or the value of a certain asset or investment whose cash…

Answered: 2. Find the present worth in year 0…

2. Find the present worth in year 0 (PT) for the cash flow diagram using an interest rate of 10% per year. i=10% Liimp= 2 A=$4000 $2000 PA=? Actual year Series year

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Constrained Optimization: Cobb-Douglas Production Function A firm operates with a Cobb-Douglas…

A: The objective of the question is to find the optimal combination of capital (K) and labor (L) that…

Q: 12 st L8 Get & Transform Data 4 6 7 1 2 Available Product 3 8 9 10 11 12 13 A 14 15 16 17 18 19 20…

A: The objective of this question is to maximize the Total Contribution Margin (TCM) given the…

Q: 4. (1) Calculate the 1-month, 3-month and 6-month forward premium/discount for US dollar, and (2)…

A: To calculate the forward premium or discount and the onshore-offshore discrepancy, use the following…

Q: Que 12: Providing social security, especially to those working in unorganised sector, is an…

A: Inclusive growth refers to an economic development strategy that benefits all segments of society,…

Q: 3. Grade Motor Co. is considering two different makes of blow molding machine for one of its…

A: The objective of the question is to determine which equipment, X or Y, should be bought based on the…

Q: When answering this question, don't round up your answer. Suppose that ever time a commercial bank…

A: Money multiplier is the concept in monetary economics where the maximum amount of money is…

Q: Consider "Providing a Public Good under Incomplete Information (refer to pages 70-74, lecture…

A: Game theory influences many elements of modern civilization, from pricing tactics and efficacy to…

Q: You are offered the choice of two payment streams: (a) $150 paid one year from now and $150 paid two…

A: Given:(a) Payment Stream:$150 paid one year from now$150 paid two years from now(b) Payment…

Q: The local government has decided that because children's health has large external benefits, it will…

A: When market demand and supply forces are not in equilibrium, the cost to society born due to such…

Q: The graph shows the cost curves, demand curve, and marginal revenue curve of a firm in monopolistic…

A: The objective of the question is to understand the concept of markup in the context of a firm…

Q: 2. Constructing a Lorenz curve from income shares data The following table shows the approximate…

A: For individuals, income is defined as the revenue they get and use for consumption and savings. A…

Q: Solve all this question......you will not solve all questions then I will give you down?? upvote...

A: The first question is asking for the valuation of a stock given its current price, dividend,…

Q: The elasticity

A: The elasticity of demand (E) measures the responsiveness of quantity demanded to a change in…

Q: Laguna Memorial Hospital (LMH) buys $800,000 in Personal Protective Equipment (PPE) each year from…

A: The Laguna Memorial Hospital purchases protective equipment for $800000. The Colorado Medical Supply…

Q: 1- Consider q =f(k,l) = kl² production function and C = vk + wl cost function. a) Find conditional…

A: Production functionq = k l2This means that the output q is produced by using capital (k) and labor…

Q: Question: Is the subject of the Jute industry studied in a macroeconomy? (a) True (b) False (c)…

A: Macroeconomy defines the branch of economics that examines the overall performance, structure, and…

Q: Which type of Economy is Indian Economy? [A] Mixed [B] Market [C] Capitalist [D] Socialist

A: In this question, we are entrusted with distinguishing the sort of economy that portrays India.…

Q: (i) Formulate the expected utility function of this player over the poker game. Explain your…

A: The expected utility function of the poker player can be formulated by considering the weighted…

Q: Question: Which of the following is considered as transfer payment? [A] College fees [B] Bank loan…

A: Transfer payment refers to the payment made by a government or other organisation to an individual…

Q: Granite Tops for You uses each. What is the company's fixed cost? B) $500 A) $250,000 Which of the…

A: Cost refers to the resources used, sacrificed, or expended to produce a good or service. It is the…

Q: The steps involved in calculating the consumer price index, in order, are as follows: * Choose a…

A: The objective of the question is to identify the correct sequence of steps involved in calculating…

Q: A worker within the middle-income class is preparing to retire. In the year before he retired, his…

A: This question asked us to calculate the before-tax and after-tax replacement rates for the worker…

Q: Suppose that the demand for lawn fertilizer can be expressed as QD = 5000 - 120P and that the supply…

A: The desire of an individual to buy a product according to the willingness and ability to purchase a…

Q: The world price of a refrigerator is $666. The value of imported components used to make the…

A: The overall degree of protection offered to a good made domestically is gauged by the ERP. It…

Q: What is the aggregate of the gross balances of primary income of all resident institutional units…

A: Identifying the Answer:-Understanding financial markers and their definitions is pivotal for…

Q: (a) From the table below, calculate the M1 and M2 values of this economy's money supply. Currency…

A: The objective of the first part of the question is to calculate the M1 and M2 money supply of an…

Q: How does the subsidies move us from the MPC curve to the MSC curve ?

A: Externalities are important in economics because they represent the unanticipated implications of…

Q: Consider a bankruptcy game with two risk neutral players where V =$800,000, C1= $300,000 and…

A: Many aspects of modern civilization are influenced by game theory, from pricing techniques and…

Q: Market demand is given as QD = 75 - 2P. Market supply is given as QS = 2P + 15. Each identical firm…

A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…

Q: Which of the following is not a scarce resource in the United States of America? Land Entrepreneur…

A: Economic scarcity refers to the fundamental concept that resources are limited in supply and cannot…

Q: take a moment to see if you can figure out which of the following products have elastic demand and…

A: The elasticity of demand measures how much the quantity demanded of a good or service changes in…

Q: Consider two identical countries (H and F) with the same individual firm's inverse demand function:…

A: The objective of the question is to solve the profit function for firms with marginal production…

Q: You are considering entering a market serviced by a monopolist You are considering entering a…

A: Monopoly refers to the type of market that has a single producer or seller for the goods in the…

Q: The economy of Nashville is producing both guitars and Cadillacs. The production possibilities…

A: The above problem is from general equlibrium,Here we are given with the PPF(production possibility…

Q: demand for bonds

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Which of the following statement correctly describes 'depreciation' ? (a) It is a monthly allowance…

A: The practice of spreading out the cost of a tangible item over the course of its useful life is…

Q: Use the given information to fill in the marginal cost of each unit, as well as the total cost and…

A: The additional cost of producing a second unit of a good is known as the marginal cost (MC). Total…

Q: (13) there are two states of the world next period. State 1 occurs with probability. The individual…

A: Utility maximisation is making the best decisions feasible in order to maximise happiness or…

Q: At the conclusion of a marketing study for the POW! Patrol mobile game, you've settled on an optimal…

A: The monetary gain or benefit consumers receive when they can purchase a good or service for a price…

Q: Discuss the limitations faced in implementing gender budgeting in India.

A: This question asked us to discuss the limitations faced in effectively implementing gender budgeting…

Q: What is fiat money? Is the U.S. dollar fiat money? Are cryptocurrencies fiat money? What counts as…

A: Fiat money is a type of currency that a government has declared to be legal tender, but it is not…

Q: A competitive firm has a cost function C-2q³-12q²+20q+100. The optimal output at price of 92 is a.…

A: COST can be defined as a concept that shows the amount of expenditure and any other sacrifice such…

Q: Assume the relationship between the growth of a fish population and the population size can be…

A: The objective of the question is to find the marginal benefit of smaller population sizes. The…

Q: (a) Suppose the natural rate of unemployment for the economy is 5 percent and the economy is…

A: The objective of the first part of the question is to understand the impact of a higher unemployment…

Q: 5. Consider the labor market in an imaginary coastal town called Nutsland. There is only one buyer…

A: A monopsony is a market structure in which there is a single buyer of the good which gives the buyer…

Q: Using the data in the following table, show what happens to the firm's output choice and profit if…

A: Cost can be defined as a concept that shows the amount of expenditure and any other sacrifice such…

Q: Cash flow, $ Year O 1 2 3 The value of G is $ 200 200 + G 200+ 2G Year 4 5 6 7 Cash flow, $ 200+ 3G…

A: i= 9%n = 7EAW = 500G='?

Q: "A manufacturing engineer is choosing between two types of HVAC systems with the following costs and…

A: IRR stands for "Internal Rate of Return," and it is a financial metric used to evaluate the…

Q: 8)Consider a market in which 5 companies operate, whose marginal and average costs are equal to c.…

A: Market:It is a placе whеrе thеrе is buying and sеlling of goods and sеrvicеs. Somе buyеrs and…

Q: You own a bakery and shop that makes and sells gourmet doggie treats. You have done market research…

A: Demand is the desire of an individual ability and willingness to pay for a product. The demand is…

Question

2. Find the present worth in year 0 (PT) for the cash flow diagram using an
interest rate of 10% per year.
PT=?
i=10%
Actual year
Upp=
4
5
7
6
1
3 4 5 6 Series year
A=$4000 $2000
PA=?
89

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation of present worth.

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Example 1.4: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual amount of A1 S2000 per year for the first 5 years, starting 1 year after the deposit, and a different annual withdrawal of 42 $3000 per year for the following 3 years. How would the cash flow diagram appearif i 8.5% per year?, Assume the F equal $13,000 find the P(Present worth)
The profit that Johnny got from selling fish have increased at a constant rate of P1100 in each of the last 3 years. If this year’s profit (end of year 1) is expected to be P6000 and the profit trend continues through year 5, a.) Draw a cash flow diagramb.) what will the profit be at the end of year 5c.) what is the present worth of the profit at an interest rate of 8% per year?
Peter has decided to make a deposit of $500 each quarter (starting next quarter) for 5 years. If the interest rate is 16%/year compounded monthly, the closest equivalent future value right after his last deposit is Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
. Find the present worth in year 0 (PT) for the cash flow diagram using an interest rate of 9% per year PT=? i = 9% PA LIET 0 1 2 4 5 6 9 Actual Year 7 8 A =$5000 $1000
Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual withdrawals of $2000 can be made before depleting the funds. If the first withdrawal is made in year 1 after the deposit and if the bank provides an interest rate of 5% per year, how much money should be deposited now? What if Troy decides to withdraw all that he has deposited in the bank now, 5 years later, how much money should he expect to get with an interest rate of 5%? I 2.
If the difference between Simple Interest and Compound Interest on a certain sum of money in 2 years at 20 % per annum is P800, then find the sum. Show solution
Cardo Dalisay deposited P1,000, P1,500, and P2,000 at the end of the 2nd year, 3rd year, and 4th year, respectively in a savings account which earned 10% per annum. What is the equivalent deposit for the uniform gradient only? PLS WITH CASH FLOW
Q1. Find the present worth in year o for the cash flows shown. Let -10 of per year.
Hewlett-Packard has completed a study indicating that $50,000 in reduced maintenance this year (i.e., year zero) on one of its processing lines resulted from improved wireless monitoring technology.a. If Hewlett-Packard considers these types of savings worth 20% per year,find the equivalent value of this result after 5 years.b. If the $50,000 maintenance savings occurs now, find its equivalent value3 years earlier with interest at 20% per year.
Alvin opens an account with a bank paying 3% interest per year to buy a house at the end of 10 years with $7,000. He then deposits $850 per year at the end of each year from Year 1 to 5, and $1,050 per year at the end of each year from Year 6 to 10. How much will he have collected at the end of Year 10?
Thank you !!!!!! Sherry expects to deposit $2000 now, $1000 4 years from now, and $2500 7 years from now. She will earn a rate of 10% per year compounded semiannually. What amount can she withdraw 9 years from now?
Ahmad wants to borrow KD10,000 now from a bank to purchase a new car. He would like to .1 repay the loan in equal quarterly payments over 20 years. Find the unpaid balance after the 64th payment if the effective interest rate is 5% per quarter