5 Micro Easeonomics: Fundamenta X + V X C D @ File | C:/Users/mrsjd/Downloads/microease_chapter-worksheets%20(2).pdf Cengage Login LBCC @ myVEGAS Slots )|Outlook _ Mayson Rivers - Ess... P My Math Lab Gmetrix QuickMath Micro Easeonomics: Fundamentals of Business Economics, First edition 22 / 23 100% + 2. A firm learns of an investment opportunity that will increase future revenue, two years from now, by $121 million. The marginal resource cost of the physical capital today is $100 million dollars. Should this firm make this investment at an interest rate of 10%? Why? Using the information from this scenario: a. What is the discounted percentage for this investment? What information does it provide? b. Other things being equal, could this investment be made at a higher interest rate? Lower? Why? c. Other things being equal, could this investment be made for a longer term? Shorter term? Why? 3. A delivery company is looking at converting their fleet of gasoline vans to electric vehicles. The all electric vans cost $75,000.00 today, minus an electric vehicle tax credit $7,500.00 and the reduced maintenance and fuel cost of $5,000. This brings today's MRC to $62,500.00 for each new electric van. The newer vans are expected to increase future MRP by $12,000.00 each year and have a productive life for five years. At the end of the fifth year, the firm expects to sell the used vans for a salvage value of $30,000.00. This firm is borrow- ing funds at 6% interest. The table indicates the possible investment for one electric vehicle. Year Future Value Present Value Discount Factor 2 3 4 Total V, Total V Q Search D W 1:49 PM () O 7/24/2023