Final answer:
The question provides an example of present value calculations at a 15% interest rate to find the price per share and discusses average cost and profit in assessing a firm's profitability. It also shows an algebraic expression used to predict GDP impact.
Step-by-step explanation:
The question appears to be incomplete, as it does not specify the numeric profit to average over the years. However, based on the information given, the present value (PV) calculations involve determining what future amounts are worth in today's dollars, considering a 15% interest rate. This requires performing multiple PV calculations for different time frames. To find the price per share, the total present value of profits must be divided by the number of shares. In the example given, $51.3 million divided by 200 shares results in an approximate cost of $256,500 per share.
Furthermore, the concept of average cost allows firms to assess profitability compared to market prices. Average profit, or profit margin, is calculated by dividing total profit by the output quantity. Lastly, the solution to an algebraic expression provided, Y-0.48Y = 1940, results in Y = 3730, demonstrates how algebra can be used to predict impacts on real GDP.