You want to bid on a company that will generate $50,000 a year for the next 3 years. At the end of the third year the company will be liquidated, and all the assets will be sold for $150,000. Assume a discount rate of 6%. How much should you bid?

Suppose the production function in an economy is y = k0.5l0.5, where k is the amount of capital and l is the amount of labor. the economy begins with 64 units of capital and 16 units of labor. use a calculator and equations in the chapter to find a numerical answer to each of the following questions. what are the wage and the rental price of capital? the wage is equal to unit(s) of output and the rental price of capital is equal to unit(s) of output.