A company is in the process of constructing a new plant at a cost of $16 million. It expects the project to generate cash flows of $9 million, $6 million, and $11 million over the next three years. The cost of capital is 18.9 percent p.a. What is the net present value of this project? (in millions to three decimals)
In: Finance
Question 22
For a worker, the opportunity cost of an hour of leisure
| a. |
is the same for a celebrity talk-show host as it is for a teacher. |
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| b. |
is determined by factors that are unrelated to his hourly wage. |
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| c. |
falls by $8 when his wage rises by $8 per hour. |
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| d. |
rises by $8 when his wage rises by $8 per hour. |
Question 23
An increase in the demand for houses
| a. |
increases the equilibrium wage of carpenters and decreases the value of carpenters’ marginal product of labor. |
|
| b. |
increases the equilibrium wage of carpenters and increases the value of carpenters’ marginal product of labor. |
|
| c. |
decreases the equilibrium wage of carpenters and increases the value of carpenters’ marginal product of labor. |
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| d. |
decreases the equilibrium wage of carpenters and decreases the value of carpenters’ marginal product of labor. |
Question 24
An increase in the value of the marginal product of labor has the effect of increasing the
| a. |
demand for labor. |
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| b. |
wage. |
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| c. |
quantity of labor employed. |
|
| d. |
All of the above are correct. |
In: Economics
Insurance companies will not pay for the full cost of a claim in the event that you do not have your property insured for at least 80% of its value due to which of the following?
| A. |
Co-insurance |
|
| B. |
Depreciation of assets provision |
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| C. |
Limited liability |
|
| D. |
Insurable interest |
In: Finance
Which of the following is false?
The cost of capital:
a) is determined by the source of the fund.
b) is an opportunity cost that depends on the use of the funds, not the source.
c) is the same thing as the required rate of return.
d) is the same as the WACC for projects with equal risk to the firm as a whole.
In: Finance
In: Accounting
What are the dimensions of the box so that the cost of materials is minimized?
A closed rectangular box has a volume of 16 cubic feet. It’s made of two different materials; the top and bottom are made of a material that costs 10 cents per square foot while the sides are made of material that costs 5 cents per square foot.
In: Math
Explain the cost of "rent seeking" associated with import quota.
In: Economics
matlab code to calculate cost of generator in power system
In: Electrical Engineering
How difficult is it to determine the cost of a product from the perspective of the company producing the product?
In: Accounting
Critically assess current value (replacment cost) accounting.
In: Accounting