A company has four project investment alternatives. The required rate of return on projects is 20%, and inflation is projected t
o remain at 3% into the foreseeable future. The pertinent information about each alternative is listed in the following chartNote:Unable to copy the table
1 answer:
Answer:
Project Anna is most beneficial project it should be on first Priority.
Order in which Project to be prioritised:
- Project Anna
- Project George
- Project Carol
- Project Thomas
Explanation:
* The Tables and requirement for this question is missing, both are attached with the answer. Please find it
Present Values:
Project Carol = ($51,571.5)
Project George = ($42,233.9)
Project Thomas = ($272,802.7)
Project Anna = $84,933.6
NPV Calculation is attache with the answer in MS Excel format Please Find That.
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Answer:
$10
Explanation:
We are to account for external costs in production, since we are asked to find optimal tax.
Given:
We now have:
A represents number of aluminum units produced, let's find A, since the margnal cost is $30.
Thus,
Let's equate the private marginal cost with the marginal revenue of each unit in order to achieve this amount of produced units with tax, t.
We have:
Substituting 100 for A above, we have:
30 - t = 20
t = 30 - 20
t = 10
Therefore, the socially optimal tax on aluminum is $10 per unit