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A proposed material for covering the roof of a building will have an estimated life of 8 years and will cost 5.000$. A heavier grade of this roofing material will cost 1.400$ more but will have an estimated life of 12 years. Installation costs for either material will be 1.800$. Compare the annual costs, a using minimum attractive return of 12% and the repeatability assumptions.
Andre walks Julia's dog once a day for $50 per week. Julia values this service at $60 per week, while the op-portunity cost of Andre's time is $30 per week. The government places a tax of $35 per week on dog walkers. After the tax, what is the los..
Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for $80,000. The retailer, in turn, brings in $125,000 from selling the bulbs directly to final customers. What amount would these two transactions added..
A former employee decides to sue QopyQat, alleging employment discrimination. Although management claims innocence, they agree to settle out of court. The settlement requires QopyQat to pay the employee $10,000 per month for the next year.
Ellen purchased a used car for $10, 000. She wrote a check $2,000 as a down payment for the car and financed the $8,000 balance. The annual percentage rate (APR) is 9% compounded monthly, and the loan is to be repaid in equal monthly installments.
A consumer's budget set for two goods ( X and Y ) is 500 >2X +4Y a.Illustrate the budget set in a diagram.b.Does the budget set change if the prices of both goods double and theconsumer's income also doubles Explain.
If the actualy price in this market were above the equilibrium price, what would drive the market toward the equilibrium. If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium
A firm is a purely competitive industry is currently producing 1000 units per day as a total cost of $600. If the firm produces 1200 units per day its total cost is $600. If the firm produces 1000 units per day its total cost would be $400.
Assume that Erica's preferences for wages and risk are given by the utility U =W x e-12R. Her friend Rambo's utility function is U = W x e-3R. Assume that W represents the hourly wage and that there is a range of job types within a particular firm..
Two production lines are under evaluation. One uses waterjet cutting technology and has an initial cost of $100,000 , an annual operating cost of $10,000 , a useful life of 5years, and a salvage value of $70,000 at the end of 5years.
Explain the effect on supply and demand that the credit market crisis in the United States in 2008 had in the market for existing single-family homes. Assuming the demand for existing single-family homes is relatively inelastic.
Maha claims that she could collect 10 oranges or can catch one fish per hour from pond besides their hometown in village while khadija claims that she could collect 2 oranges or 2 fish per 2 hours.what is the opportunity cost of catching fish for ..
Your business manufactures a component for an OEM customer who pays you every quarter for your products. You must borrow $3.5 million to expand your warehouse. You arrange to borrow the money from the bank at 8% APR compounded monthly.
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