Determine the net present value


I want some assistance in solving this net problem question. I Any assistance will be appreciated. Prices for new components cost $50.

Thus, P=MR=$50. Marginal costs MC=10+0.003Q and Total Costs TC=78,000+18Q+.002Q^2(this means the Q is squared).

A new building will cost $100,000. A company is trying to determine if the building is a good investment. What is the net present value? The interest rate is 5% and and the growth rate is 3%. Assume a 10 year period. Should the company buy?

Do you have an equation to help solve this and a solution?

Solution Preview :

Prepared by a verified Expert
Microeconomics: Determine the net present value
Reference No:- TGS01749027

Now Priced at $20 (50% Discount)

Recommended (95%)

Rated (4.7/5)