1. Given the following information and ignoring taxes, what is the annual cash revenue that will make the net present value equal to zero (i.e., the annual cash revenue that will cause us to break-even in the financial sense)?                             

• Annual cash costs = $14,000
• Life of project = 8 years
• Initial cost of project = $30,000
• Salvage value at end of project = $2,000
• Required rate of return = 15%

Please analyze the possible revenue models of WeChat, and briefly explain your conclusion.

1. You are assigned two tasks. In the first, you are asked to project tax revenue for a city government under the assumption that current tax rates are left unchanged. In the second you are asked to forecast the revenue increase that would result from increasing the tax on automobiles garaged in the city. You want to use regressions to answer these two questions
   1. Would you need to be concerned about the exogeneity of your right-hand-side variables in one, both or neither of the projects. Explain.
   2. What time-series technique would be appropriate for projecting revenue assuming there are no changes to the tax rates? What steps are involved?

To raise revenue, a city is planning to impose a $5 tax per ticket for tickets to music concerts held in the city. The mayor is deciding between two ways of implementing the tax policy. The first way is to collect the $5 tax per ticket from the concert performers (the producers of concerts). The second way is to collect the $5 tax per ticket from the concert-goers (the consumers of concerts). An assistant to the mayor says the first way makes producers bear a greater share of the tax burden from this tax policy while the second way makes the consumers bear a greater share, so the mayor should think about whether she cares more about the producers or the consumers in making this decision. Is this advisor’s advice based on sound economic reasoning?

Expenditures made to extend an asset's life are called revenue expenditures.

True False

Discuss the pros and cons of tax-backed and revenue municipal bonds and the advantages and disadvantages of including them in a portfolio.

How is Paypal likely to generate revenue through the acquisition of honey science? What is the basis of its profitability? Please explain its business model.