# What is the maximum amount you would pay for an asset that generates an income of \$150,000 at the end of each year if the opportunity cost of using the fund is 9 percent?

• What is the maximum amount you would pay for an asset that generates an income of \$150,000 at the end of each year if the opportunity cost of using the fund is 9 percent?
• Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations:
• A. Write out the equation for the net benefit.

B. What is the net benefit when q = 1? And when q = 5?

C. Write out the marginal net benefits.

D. What are the marginal net benefit when q= 1 and when q = 5?

E. What level q maximizes net benefit?

• A firm’s current profit is \$550,000. These profits are expected to grow indefinitely at a constant rate of 5 percent. If the firm’s opportunity cost of funds is 8 percent, determine the value of the firm.
• Income elasticity of demand has various applications. Explain each application with the help of an example.
• Explain the nature and scope of managerial economics.