What is weighted average cost of capital, how is it used, and when is it not appropriate to use?

What is an opportunity cost? How is it used in a time value analysis? Is the opportunity rate a single number that is used in all situations? Integrate Bible passages into the discussion that address the Christian worldview.

Identify and discuss the factors that are affecting the way cost accounting is practiced.

"A manufacturing company is considering a new investment in a machine that will cost $170,000 and has a maintenance cost of $5,700 that occurs every 2 years starting at the end of year 2. Assuming that this equipment will last infinitely under these conditions, what is the capitalized equivalent cost of this investment at the rate of 13.6%? Enter your answer as a positive number."

Suppose there are n = 100 firms in the market each with the cost function is C(y) = 5 + y + 0.5y^2. What is the inverse market supply curve? What is the market supply curve? Draw the market supply curve. (Hint: Go from individual supply to market supply. Finish by getting inverse market supply.)

Dan is evaluating a project that will cost ​$900,000 but is expected to produce cashflows of ​$225,000 per year for 10 years, with the first cash flow in one year. His cost of capital is 12% and his ​company's preferred payback period is three years or less.

a. What is the payback period of this​ project?

b. Should he take the project if he wants to increase the value of the​ company?

What is a dollar amount for the cost of addressing women's health in Virginia?

1. Suppose the cost of labor rises by 25% and are expected to stay at that level for a long time. Show graphically how this change in the relative price of labor and capital affects the firm’s expansion path. (7 pts)

2. Suppose that a firm’s production function is q = 2L^1/2K^1/2. The cost of a unit of labor is $18.50 and the cost of a unit of capital is $20. The firm is currently producing 1,000 units of output and has determined that the cost minimizing quantities of labor and capital are 100 and 20, respectively. Write the function form of isoquant (K as a function of L, given q = 1,000). Also write the function form of isocost. (8 pts)

3. Give an example of an implicit opportunity cost, based on observation in your daily life, as a student, a worker, or an entrepreneur. Implicit cost is cost that does not require an outlay of money. (6 pts)

If the estimated lifetime benefit of a system is $870,000 and the estimated lifetime cost of the system is $550,000.

1. What is the estimated lifetime Return On Investment (ROI)?

(First, state the formula).

2. What is the annual percentage of the ROI if the estimated cost/benefit is for 4 years duration?

    c.      What is the real annual cash value of the system?

People in the aerospace industry believe the cost of a space project is a function of the mass of the major object being sent into space. Use the following data to develop a regression model to predict the cost of a space project by the mass of the space object. Determine r2 and se.

Weight (tons) 1.897, 3.019, 0.453, 0.979, 1.058, 2.100, 2.408, Cost ($ millions) 53.6, 184.7, 6.4, 23.5, 33.4, 110.4, 104.6

*(Do not round the intermediate values. Round your answers to 4 decimal places.)

**(Round the intermediate values to 4 decimal places. Round your answer to 3 decimal places.)

ŷ = *? + *? x

r2 =?**

se =?**