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# net problem question

I need some help 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

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 ...

#### Solution Summary

Solve net problem question.

\$2.19