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JNU DOUBTS

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JNU DOUBTS

Shefali
213 posts
1..asset which lasts forever is expected to give a return of Rs.600 each year. If the rate of interest is 12 per cent, the present value of the asset is
(a) Rs. 7,200 (b) Rs. 12,000 (c) Rs. 5,000 (d) Rs. 2,00








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Re: JNU DOUBTS

Homer Simpson
551 posts
1(c)
2(c)
A23(b)
“Operator! Give me the number for 911!”
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Re: JNU DOUBTS

Shefali
213 posts
tSUKI...PLSSS expalin...i'm not getting :((
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Re: JNU DOUBTS

Homer Simpson
551 posts
1) Present value of perpetuity = C/i = 600/0.12 = 5000

2) take C = f+cq (plug values and solve for c)

3) 7% of x = 35, solve for x
“Operator! Give me the number for 911!”
ViV
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Re: JNU DOUBTS

ViV
402 posts
In reply to this post by Homer Simpson
@Tsuki: How did u do the 1st one ?
ViV
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Re: JNU DOUBTS

ViV
402 posts
got it thanks!!
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Re: JNU DOUBTS

akanksha
60 posts
In reply to this post by Shefali
shefali..
here MC from 10 chocolates to 30 chocolates will be o.5 (20-10/30-10)
but for the 31st chocolate u can't find the mc..since total cost is not available..
hence the ans is e)
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Re: JNU DOUBTS

Shefali
213 posts
thankuuu tsuki
wt abt mc one...pls confirm
ViV
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Re: JNU DOUBTS

ViV
402 posts
@Shefali
at Q = 10,TC =10
TC =TFC+TVC
If TFC = 5, TVC = 5 and TVC = c.Q
where c is a per unit cost.
c= 10-5/10 =0.5
Similarly, at Q=30, TC = 20. TFC = 5, TVC =15
c = 15/30 =0.5
hence (c)
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Re: JNU DOUBTS

Shefali
213 posts
hw IS TVC 5??
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Re: JNU DOUBTS

Homer Simpson
551 posts
I dont think its necessary to put any values of TFC or TVC here. What we can say for sure is that

C = TFC + TVC and TVC = cQ
so, C = TFC+cQ

When C=10, Q=10,     10 = TFC+10c -(i)
  and C=20, Q=30,      20 = TFC+30c -(ii)

Subtract (i) from (ii) -

10 = 20c
c=1/2
“Operator! Give me the number for 911!”
ViV
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Re: JNU DOUBTS

ViV
402 posts
Yeah!! We can work this way also..
Thanks!!!