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- C) the internal rate of return is between what two whole discount rates (e.g, between 10%, and 11%, between 11% and 12% between 12% and 13% between 13%and 14% etc)? Can you help me solve this question with the table provided in excel?A market demand function is given by the equation QD = 180 – 2P. Find the value of consumer surplus if price is equal to 65. Illustrate your demand curve and the area of consumer surplus. Identify the area of consumer surplus, the price at which demand is zero, the level of demand if price was zero and the slope (show calculation if required).The modified internal rate of return (MMIR) is the discount rate that forces the _____.
- Internal Rate of Return is the discount rate that sets NPV to 0. True or false?Benefit cost analysis may be conducted with real or nominal dollars and real or nominal discount rates. Which statement about real vs. nominal dollars and discount rates is most accurate? O Using real dollars and a real discount rate will yield the same result as using nominal dollars and a nominal discount rate. O When using real dollars, the analyst should use the nominal discount rate to adjust for inflation. O When using nominal dollars, the analyst can use either a real or nominal discount rate. It does not matter. O Nominal discount rates do not include a risk factor. If risk is a significant element, then the analyst should use a real discount rate.5. A Loan Amortization can help a Manager take advantage of lowerinterest rates. T/F 6. IRR can be used to either accept or reject a project, if compared tothe discount rate. T/F
- For a certain product, the revenue is given by R = 60x and the cost is given by C(x) = 40x + 1100. To obtain a profit, the revenue must be greater than the cost. For what values of x will there be a profit? x >Refer to the following payoff table (values are profit): State of Nature Alternative S1 S2 A1 75 −40 A2 0 100 Prior Probability 0.6 0.4 What is the expected payoff of the decision strategy (i.e. using the EMV/EP criterion)?Consider a market with the following supply and demand. (It may help to draw a graph for these questions.) P 5 6 7 8 9 10 11 12 13 14 QS 200 300 400 500 600 700 800 900 1000 1100 QD 800 750 700 650 600 550 500 450 400 35 For the questions assume that there is a $3 external COST. 1. Now imagine that they use tradable allowances. If they cap the quantity at 400 what would the value of these allowance be in the market? (Assume the market is perfectly competitive and that "one allowance" lets you produce one unit of the good.) 2. What will they be worth if the quantity is capped at 500? 3. What if it is capped at 700?
- Given the demand function D(p) /175 - 3p, Find the Elasticity of Demand at a price of $39 = At this price, we would say the demand is: Elastic Unitary O Inelastic Based on this, to increase revenue we should: Raise Prices Lower Prices Keep Prices UnchangedNeed help with a and b as well as the last question on whether the internal rate of return is the same as discount rate25.For a upward slope yield curve, ( )exists. I forward rate II zero rate III par yieldA.I>II>III B. III> II> I C. II > I >III