The market volume for widgets is increasing by 15% per year from current profits of $200,000. Investing
Question:
The market volume for widgets is increasing by 15% per year from current profits of $200,000. Investing in a design change will allow the profit per widget to stay steady; otherwise they will drop 3% per year. What is the present worth of the savings over the next 5 years? Ten years? The interest rate is 10%.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (18 reviews)
Year 200000 15 Potential Lost Profit 3 Incremental Cash Flow B 1 C PW 10 1 200000 ...View the full answer
Answered By
Pushpinder Singh
Currently, I am PhD scholar with Indian Statistical problem, working in applied statistics and real life data problems. I have done several projects in Statistics especially Time Series data analysis, Regression Techniques.
I am Master in Statistics from Indian Institute of Technology, Kanpur.
I have been teaching students for various University entrance exams and passing grades in Graduation and Post-Graduation.I have expertise in solving problems in Statistics for more than 2 years now.I am a subject expert in Statistics with Assignmentpedia.com.
4.40+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
The famous Widget Company sells widgets at the rate of 80,000 units per year. Each widget sells for $100, and it costs 30 percent to carry widgets in inventory for a year. The process of widget...
-
The one-year interest rate over the next 10 years will be 3%, 4.5%, 6%, 7.5%, 9%, 10.5%, 13%, 14.5%, 16%, and 17.5%. Using the expectations theory, what will be the interest rates on a three-year...
-
Use the Second Order Runge-Kutta Method to solve for x and y from t = 0 to t=0.5s with step At = 0.1s: (x'= 13.1x 13.94x y' = 1.71x With x(0) = 0.03 and y(0) = 0.
-
A construction company is considering taking on a new project. The total project cost is $5 million, and there is a 70% chance that the project will be completed on time and within budget, resulting...
-
Find the mission and values statements for four different hospital types. Do their missions and values reconcile with your expectations for the type of organization? Look at a religious based...
-
Water exerts pressure on the upstream face of a dam as shown in Figure. The pressure can be characterized by p(z) = pg(D - z) Where p(z) = pressure in pascals (or N/m2) exerted at an elevation z...
-
Which manager uses a transformational leadership style to motivate employees? A. Dick, who works daily to get the task done and gives to do lists to employees. B. Martin, who is known for seeing that...
-
MidCoast Airlines uses the following performance measures. Classify each of the performance measures below into the most likely balanced scorecard perspective it relates to. Label your answers using...
-
research a current event related to the topic- the topic is -Diversity in Criminal Justice - Part One: Summary of Current Event Summary of Current Event: Always include the: Who, What, When, Where, &...
-
Duque Power Company wants to develop a regression model to help predict its daily peak power demand. This prediction is useful in determining how much generating capacity needs to be available (or...
-
Your beginning salary is $50,000. You deposit 10% at the end of each year in a savings account that earns 6% interest. Your salary increases by 5% per year. What value does your savings book show...
-
A 30-year mortgage for $120,000 has been issued. The interest rate is 10% and payments are made monthly. Print out the balance due, principal payment and interest payment for each period.
-
1. Explain what screening is. 2. Explain why employers employ screens. 3. Explain why employers promote from within their company, rather than hire outsiders. 4. Explain how screening for low...
-
Find range of f(x) = 10 17x+8| 9.
-
A not-for-profit boys club, YBCA, received $190,000 in pledges at year-end. Of the pledges received, $75,000 is donor restricted for replacement of the gym's hardwood floors and the remainder is...
-
A budget is an estimate of income and expenditures for a given future period and is typically created and updated regularly. As a warm-up, write down the key things that come to your mind when you...
-
The four people below have the following investments. Invested Amount Interest Rate Compounding Jerry Elaine $ 11,900 12% Quarterly 14,900 10 Semiannually George 21,900 6 Kramer 17,900 8 Annually...
-
In cumulene, what are the C-C-C and H-C-H bond angles, respectively? Halasanarated by:
-
Defenses for not performing under a contract include: Fraud Mistake of fact or law Duress Impossibility to perform the contract Expiration of the statute of limitations
-
TRUE OR FALSE: 1. Banks with a significantly large share of fixed-interest rate home loans are less exposed to interest rate risks. 2. Although Australian banks are pretty big, they are not...
-
Liverpool Bank has an income gap of -$10 million, Alur Finance Co has an income gap of $25 million and TLBR Bank has an income gap of -$15 million. Propose an interest rate swap that will benefit all...
-
State the conditions under which the market interest rate is (a) Higher than (b) Lower than (c) The same as the real interest rate.
-
What annual inflation rate is implied from an inflation-adjusted interest rate of 10% per year, when the real interest rate is 4% per year?
-
Determine the inflation-adjusted interest rate for a growth company that wants to earn a real rate of return of 20% per year when the inflation rate is 5% per year.
-
Part III: State St. Co. The State St. Co. has just gone public. Under a firm commitment agreement, the company received $17.64 for each of the 3.2 million shares sold. The initial offering price was...
-
Problem 12-6 Market Model The following three stocks are available in the market: E(R) B Stock A 11.1% 1.20 Stock B 13.0 1.00 Stock C 15.5 1.40 1 Market 14.5 Assume the market model is valid. a. The...
-
Question Content Area Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate...
Study smarter with the SolutionInn App