Calculate the internal rate of return for a machine that costs $500,000 and provides annual revenue of $115,000 per year for 5 years. You can assume all revenue is received once a year at the end of the year.
What will be an ideal response?
To solve this we equate the cost of the machine to the sum of the present value for each annual payment and solve for the interest rate. Using a financial calculator or a spreadsheet we obtain an internal rate of return of 4.85%.
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A rational criminal model assumes
A. smart people commit crime. B. criminals commit crimes because they have more legal opportunities. C. criminals will commit fewer crimes if the likelihood of getting caught rises. D. criminals will commit more crimes if the severity of punishment rises.
Which of the following statement is correct?
A. When Marginal Product is greater than Average Product, Average Product is equal to Total Product. B. When Marginal Product is greater than Average Product, Average Product is decreasing. C. When Marginal Product is greater than Average Product, Total Product is increasing at a decreasing rate. D. When Marginal Product is greater than Average Product, Average Product is increasing.
Potential GDP is the
A) the maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation. B) current value of production in the economy. C) value of production when the economy is in a recession. D) value of production when the economy is at a peak.
For all employee earnings subject to Social Security taxes, what is the current Social Security tax rate for employees?
A) 0.8% B) 2.9% C) 4.2% D) 6.2%