setting up equations for investment with varying interest rates etc...

step-by-step solution in equation form for all cost analysis sections 1. What sum of money will be accumulated in 10 years if: a) $100 is invested at the end of each month at a 15% rate of return compounded annually. b) The same investment as above for a 3% rate of return compounded monthly. What is the effective rate? c) $1,000 is invested at the end of the first year, $1,100 is invested at the end of the second year and each succeeding years investment is $100 higher for 10 years at 15% compounded annually. d) What single investment at time zero would generate the part (a) future worth? e) What will the present worth of investments in part (c) be if the investments are ... click for more

8890- cost benefit analysis

Subject: patents (cost/benefits) Details: But the ?allocative distortions? of textbook price theory are not the only consequences of patent protection. If patents permit firms to set P>MC (P might be ten times MC or in extreme cases even 100xMC), this implies very large ?gross margins?- in accounting terms the spread between sales revenues and the cost of goods sold, before allowances for contributions to fixed costs and other costs not directly related to production. What incentives and capabilities (consider both) does this large gross margin create of advertising? Is it then surprising that drug that drug companies?strictly for profit firms?spend about twice as much for advertising (pri... click for more

8957- Cost-Benefit Analysis

1. Offshore Petroleum's fixed costs are $2,500,000 and its debt repayment requirements are $1,000,000. Selling price per barrel of oil is $18 and variable costs per barrel are $10. (a) Determine the breakeven output (in dollars). (b) Determine the number of barrels of oil that offshore must produce and sell in order to earn a target (operating) profit of $1,500,000. (c) Determine the degree of operating leverage at an output of 400,000 barrels. (d) Assuming that sales of oil are normally distributed with a mean of 362,500 barrels and a standard deviation of 100,000 barrels, determine the probability that Offshore will incur an operating loss. Note: Part (d) requires the use of statisti... click for more

Price elasticity of demand of apples

Suppose the price of apples rises from $3 a pound to $3.45 and your consumption of apples drops from 30 pounds of apples a month to 21 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it elastic, inelastic, or unitary elastic?

Quantitative Decison making for business - Management Science

Please solve all parts to the problem. I have added the Excell add-in which is Decison Helper. YOu can use whichever software program u want to solve problem thanks 1. A chemical company is building a plant to market Zircag, a new chemical used primarily in agriculture. The firm is uncertain about the demand for Zircag during the initial year of sales. However, the following probability distribution was assessed. Demand for Zircag for Initial Year (kilograms) Probability 800 0.2 1,000 0.4 1,200 0.3 1,400 0.1 Zircag is produced on a special-purpose machine. Each such machine has a yield of 200 kilograms of Zircag per year. The fixed cost of purchasing and operating one mac... click for more