Go to the Bureau of Economic Analysis at this Web site, and look up the latest new release for real GDP. Address the following questions after reading the latest release:
• Where is the United States in the business cycle?
• What is the real GDP today?
• What is the largest component of GDP?
• What is the smallest component of GDP?
• What is the fastest growing component of GDP, and why?
• What components of GDP were involved in the change from last month to this month?
• What is the price index today?
• What caused the change?
Does the assumption concerning the reinvestment of intermediate cash inflow tend to favor NPV or IRR? In practice, which technique is preferred and why?
Explain how each of the following inputs is uesd to calculate the initial investment: 1) cost of new asset, 2) installation costs, 3) proceeds from sale of old asset, 4) tax on sale of old asset, and 5) change in net working capital.
A country is described by the Solow model, with a production function of y = k1/2.
Suppose that k is equal to 225. The fraction of output invested is 60%. The depreciation
rate is 5%. Is the country at its steady-state level of output per worker, above the
steady state, or below the steady state? Explain how you reached your conclusion
If a stock is expected to pay a dividend of $50 for the current year, what is the approximate present value of this stock, given at discount rate of 6% and a dividend growth rate of 4%?