This document provides solutions to selected problems from Chapter 10. It begins by noting students should attempt problems before viewing solutions. It then provides solutions to problems 2, 5, 8, 11, 12, 14, 16, 20, 23, 24, 27, 29, 32, 35, 38, 41, 44, and 46. Each solution is 1-2 paragraphs explaining the steps and reasoning to arrive at the answer. The document emphasizes that the content is proprietary and for limited distribution only to students for their coursework.
Survey of Finance and Engineering Economics Presented byMoha.docxmattinsonjanel
Survey of Finance and Engineering Economics
Presented by
Mohammed Ali Alsendi
Nadia Mohammed Daabis
Instructor
Professor Wajeeh Elali
Time Value of Money
Time value of money refers to the concept that a dollar today is worth more than a dollar tomorrow.
Case study
NATASHA, 30 years old and has Bachelor of science degree in computer science.
Working as Tier 2 field service representative for a telephony corporation located in Seattle, Washington.
She has $75,000 that recently inherited from her aunt, and invested this money in 10 years treasury bond.
Terms of Common Inputs
Current Salary $38,000/-
She don’t expect to lose any income during the Certification or while she earning her MBA.
In both cases, she expect her salary differential will also grow at a rate of 3% per year, for as long as she keep working.
Keep using the interest rate as discount rate for the remainder of the problem
CAMPARISME SUMMARYOption 1 "Network Design"Option 2 "MBA"PositionTier 3Managerial PositionCost$5,000 $25,000 / YearPeriod1 year3 years Salery Increasment$10,000 $20,000 Payment DueEnd of 1 yearBegin of each yearRiskAbove 80% on an exam at end of courseEvening program which will take 3 years to complete
Summary
Timeline
Option 1
Option 2
t0
t1
t2
t3
$38,000
$39,140
$50,614.20
$52,132.62
$38,000 x 3%
($39,140+$10,000) x 3%
$50,614.20 x 3%
($5,000)
($25,000)
($25,000)
($25,000)
$39,140
$40,314.20
$41,523.626
$38,000 x 3%
$39,140x 3%
$39,140 x 3%
t4
$53,696.59
$63,369.33
($41,523.626+$20,000) x 3%
$52,132.62x 3%
Timeline Graph
Current Sutation 38000 39140 40314.200000000004 41523.626000000004 42769.334780000005 44052.414823400009 45373.987268102013 46735.206886145075 Certificate 38000 39140 50614.200000000004 52132.626000000004 53696.604780000009 55307.50292340001 56966.728011102015 58675.729851435077 MBA 38000 39140 40314.200000000004 62123.625999999997 63987.334779999997 65906.954823399996 67884.163468101993 69920.688372145058
Yearly Income
Treasury Bond
Amount $75,000
Period 10 years
Rate 3.52% (1st June, 2009)*
A marketable, fixed-interest government debt security with a maturity of more than 10 years. Treasury bond make interest payment annualy and the income that holders receive is only taxed the federal level.
t0
t1
t2
t10
($75,000)
Treasury Bond
$9027.19
$9027.19
$9027.19
…..
PVA(ordinary) = PMT 1 – (1+k)-n
K
$75,000 = x 1 – (1+0.0352)-10
0.0352
PMT = $9027.190
[ ]
[ ]
C ...
WEEK 5 PROBLEM SET Due week 5 and worth 200 points. Yo.docxcockekeshia
WEEK 5 PROBLEM SET
Due week 5 and worth 200 points.
You will submit your answers in a Blackboard assessment filling out charts and answering the
essays/short answer questions.
Note: There is not an option to upload your assignment, you must use the Blackboard
assessment; however, you will be able to copy and paste your answers from a Word document.
Problem 1: Using the Marginal Approach
Suppose your company runs a shuttle business of a hotel to and from the local airport. The costs for
different customer loads are:
1 customer: $30
2 customers: $32
3 customers: $35
4 customers: $38
5 customers: $42
6 customers: $48
7 customers: $57
8 customers: $68.
1. What are your marginal costs for each customer load level? (Chart)
2. If you are compensated $10 per ride, what customer load would you choose? (Essay)
Problem 2: Elasticity and Pricing
Suppose the number of firms you compete with has recently increased. You estimated that as a result of
the increased competition, the demand elasticity has increased from –2 to –3, i.e., you face more elastic
demand. You are currently charging $10 for your product. What is the price that you should charge, if
demand elasticity is -3?
(Essay)
Problem 3: Price Discrimination
An amusement park, whose customer set is made up of two markets, adults and children, has developed
demand schedules as follows:
Price ($)
Quantity
Adults Children
5 15 20
6 14 18
7 13 16
8 12 14
9 11 12
10 10 10
11 9 8
12 8 6
13 7 4
14 6 2
The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is
average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.
Calculate the price, quantity, and profit if:
1. The amusement park charges a different price for adults. (Chart)
2. The amusement park charges a different price for children. (Chart)
3. The amusement park charges the same price in the two markets combined. (Chart)
4. Explain the difference in the profit realized under the two situations. (Essay)
Problem 4: Bundling
Time Warner could offer the History Channel (H) and Showtime (S) individually or as a bundle of both.
Suppose the reservation prices of customers 1 and 2 (the highest prices they are willing to pay) are
presented in the boxes below.
The cost to Time Warner is $1 per customer for licensing fees.
Preferences
Showtime History Chanel
Customer 1 9 2
Customer 2 3 8
1. Should Time Warner bundle or sell separately? (Essay)
2. Should Time Warner bundle if everyone likes Showtime more than the History Channel, i.e.,
preferences are positively correlated. (Essay)
3. Suppose Time Warner could sell Showtime for $9, and History channel for $8, while making
Showtime-History bundle available for $13. Should it use mixed bundling. i.e., sells products both
separately and as a bundle? (Essay)
ECO 550 – Managerial Economics a.
Industrial Training at Shahjalal Fertilizer Company Limited (SFCL)MdTanvirMahtab2
This presentation is about the working procedure of Shahjalal Fertilizer Company Limited (SFCL). A Govt. owned Company of Bangladesh Chemical Industries Corporation under Ministry of Industries.
Hierarchical Digital Twin of a Naval Power SystemKerry Sado
A hierarchical digital twin of a Naval DC power system has been developed and experimentally verified. Similar to other state-of-the-art digital twins, this technology creates a digital replica of the physical system executed in real-time or faster, which can modify hardware controls. However, its advantage stems from distributing computational efforts by utilizing a hierarchical structure composed of lower-level digital twin blocks and a higher-level system digital twin. Each digital twin block is associated with a physical subsystem of the hardware and communicates with a singular system digital twin, which creates a system-level response. By extracting information from each level of the hierarchy, power system controls of the hardware were reconfigured autonomously. This hierarchical digital twin development offers several advantages over other digital twins, particularly in the field of naval power systems. The hierarchical structure allows for greater computational efficiency and scalability while the ability to autonomously reconfigure hardware controls offers increased flexibility and responsiveness. The hierarchical decomposition and models utilized were well aligned with the physical twin, as indicated by the maximum deviations between the developed digital twin hierarchy and the hardware.
Hybrid optimization of pumped hydro system and solar- Engr. Abdul-Azeez.pdffxintegritypublishin
Advancements in technology unveil a myriad of electrical and electronic breakthroughs geared towards efficiently harnessing limited resources to meet human energy demands. The optimization of hybrid solar PV panels and pumped hydro energy supply systems plays a pivotal role in utilizing natural resources effectively. This initiative not only benefits humanity but also fosters environmental sustainability. The study investigated the design optimization of these hybrid systems, focusing on understanding solar radiation patterns, identifying geographical influences on solar radiation, formulating a mathematical model for system optimization, and determining the optimal configuration of PV panels and pumped hydro storage. Through a comparative analysis approach and eight weeks of data collection, the study addressed key research questions related to solar radiation patterns and optimal system design. The findings highlighted regions with heightened solar radiation levels, showcasing substantial potential for power generation and emphasizing the system's efficiency. Optimizing system design significantly boosted power generation, promoted renewable energy utilization, and enhanced energy storage capacity. The study underscored the benefits of optimizing hybrid solar PV panels and pumped hydro energy supply systems for sustainable energy usage. Optimizing the design of solar PV panels and pumped hydro energy supply systems as examined across diverse climatic conditions in a developing country, not only enhances power generation but also improves the integration of renewable energy sources and boosts energy storage capacities, particularly beneficial for less economically prosperous regions. Additionally, the study provides valuable insights for advancing energy research in economically viable areas. Recommendations included conducting site-specific assessments, utilizing advanced modeling tools, implementing regular maintenance protocols, and enhancing communication among system components.
Final project report on grocery store management system..pdfKamal Acharya
In today’s fast-changing business environment, it’s extremely important to be able to respond to client needs in the most effective and timely manner. If your customers wish to see your business online and have instant access to your products or services.
Online Grocery Store is an e-commerce website, which retails various grocery products. This project allows viewing various products available enables registered users to purchase desired products instantly using Paytm, UPI payment processor (Instant Pay) and also can place order by using Cash on Delivery (Pay Later) option. This project provides an easy access to Administrators and Managers to view orders placed using Pay Later and Instant Pay options.
In order to develop an e-commerce website, a number of Technologies must be studied and understood. These include multi-tiered architecture, server and client-side scripting techniques, implementation technologies, programming language (such as PHP, HTML, CSS, JavaScript) and MySQL relational databases. This is a project with the objective to develop a basic website where a consumer is provided with a shopping cart website and also to know about the technologies used to develop such a website.
This document will discuss each of the underlying technologies to create and implement an e- commerce website.