When all future cash flows are expressed in thencurrent dollars, the rate that should be used to

Question:

When all future cash flows are expressed in thencurrent dollars, the rate that should be used to find the present worth is the:

(a) Real MARR

(b) Inflation rate

(d) Real interest rate

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

See More Books

Question Posted: Dec 26, 2018 07:33 AM

See More Questions

A firm is considering two capital investment projects. Project A involves an initial cost of $125,000. The discounted present value of all future cash flows is $145,000. Project B requires an initial...
Consider the following facts. The standard deviation of the cash flows associated with Business I is 0.8. The larger this standard deviation, the riskier a businesss future cash flows are likely to...
Recent technology has made possible a computerized vending machine that can grind coffee beans and brew fresh coffee on demand. The computer also makes possible such complicated functions as changing...
How many bits are needed to digitally record 90 seconds of your favorite music tune? The sampling rate commonly used for music is 44.1 kHz (i.e. 44100 Hz). Each sample is represented using 16 bits....
Kay Wing, Inc., prepared the following balance sheet at December 31, 2016. Kay Wing, Inc. Balance Sheet as of December 31, 2016 Cash................................................................$...
Isaac Engines Inc. produces three productspistons, valves, and camsfor the heavy equipment industry. Isaac Engines has a very simple production process and product line and uses a single plantwide...
Why do you think a salesperson might experience call reluctance? How can it be overcome?
Fuqua Company has accumulated the following budget data for the year 2010. 1. Sales: 30,000 units, unit selling price $80. 2. Cost of one unit of finished goods: Direct materials 2 pounds at $5 per...
December 3 1 mountain and meadow adjusts the accounts only at december 3 1 , the end if the fiscal year Prepare the adjusting journal entry to record the rebt expense at decemeber 3 1.
The 3-kg block A is released from rest in the 60 position shown and subsequently strikes the 1-kg cart B. If the coefficient of restitution for the collision is e = 0.7, determine the maximum...
Do the same task as in Prob. 13 if the given sample is 0.4, 0.7, 0.2, 1.1, 0.1. Data from Prob. 13 From the sample 1.9, 0.4, 0.7, 0.6, 1.4. Graph the sample distribution function F(x) and the...
In order to convert inflated dollars into constant value dollars, it is necessary to: (a) Divide by (1 + if ) n (b) Divide by (1 + f ) n (c) Divide by (1 + i) n (d ) Multiply by (1 + f) n
Can any matrix be written as a system of linear equations? Explain why or why not. Explain how to write that system of equations.
What security provides a good estimate of the short-term nominal risk-free rate?
Assume the following equation: \[ Q_{x}^{s}=-4+1 / 2 P_{x}-2 W \] where $Q_{x}^{s}$ is the quantity of good $X$ supplied, $P_{x}$ is the price of good $X$, and $W$ is the wage rate paid to...
A person who makes a will. a. benefi ciary b. bequest c. codicil d. decedent e. devise f. executor g. holographic will h. inter vivos i. intestate j. personal representative k. residuary l. settlor...
What are the advantages of a formal reorganization under Chapter 11?
The person named in a will to administer the estate. a. benefi ciary b. bequest c. codicil d. decedent e. devise f. executor g. holographic will h. inter vivos i. intestate j. personal representative...
List the variables in the marketing mix. How is each used in a marketing strategy?
Read the Forecasting Supply Chain Demand Starbucks Corporation case in your text Operations and Supply Chain Management on pages 484-485, then address the four questions associated with the...
Explain the present legal status of exclusive distribution. Describe a situation where exclusive distribution is almost sure to be legal. Describe the nature and size of competitors and the industry,...
Discuss the promotion a new grocery products producer would need in order to d e velop appropriate channels and move products through those channels. Would the nature of this job change for a new...
Describe the advantages and disadvantages of the approaches to international market entry discussed in this chapter.
You own a Triplex and are renting each unit for $1029/month Expenses will be 45% of gross rent Vacancy rate is 5% You will also have additional income by charging $25/month/unit for each unit's use...
Calculate this by using this formula: Break-Even Point = Fixed Costs / (Sale Price per Unit - Variable Costs per Unit): Existing Process Metrics: Workforce: 5 employees Output Rate: 60 fittings per...
What is your estimate of the total charge, in dollars, for concrete transportation for this project? Your answer should be rounded to the nearest 1000. Do not enter a $ sign. Hint: There are 1000...

When all future cash flows are expressed in thencurrent dollars, the rate that should be used to

Question:

Step by Step Answer:

c In...View the full answer

Engineering Economy

Students also viewed these Business questions