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The Moo-Cow Dairy may purchase new milking equipment for its milking barn. The equipment costs $135,000. The annual savings due to increased production and decreased labor costs will be $25,000. The equipment requires a minor overhaul every 2 years that costs $5000. At the end of the sixth year, a major overhaul costing $15,000 will be required. The equipment is expected to last 10 years with scheduled overhauls. No salvage value is anticipated. If money is worth 7% to the dairy, determine the equipment's PW.
You are the consultant assigned to study the organizational environment in the Miami, Florida, and the Kansas City, Missouri, offices.
Suppose the cross-price elasticity of demand for pork with respect to the price of chicken is equal to +0.4. What does this tell you about the relation between pork and chicken? What will happen to consumption of pork if the price of chicken falls by..
A firm purchased a pump and motor for $1925 installed. It was later discovered that the pump had been improperly selected for the required head and discharge. As a result, the power bill for operating the pump was $900 for a year. The firm uses a min..
Description of how globalization should have improved/not improved the situation in a country such as Malawi including. Characteristics of Globalization for a country such as Malawi. For each characteristic in i), the changes that should occur for Ma..
Why do insurance contracts exist for some, but not all risks? Why do we have government programs to lessen some types of risk and what are the effects of these programs on individual behavior?
You need both equations and clearly labeled graphs (separate graphs for each question) to answer the following questions. Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. How much can we e..
What are the export regulation in Italy? What type of paperwork and bureaucracy are needed to export? Does the government provide assistance? Any government organizations to help exporters?
Some of the largest import tariffs, the tax on imported goods, are on shoes. Strangely, the cheaper the shoes, the higher the tariff. The highest U.S. tariff, 67%, is on a pair of $3 canvas sneakers, while the tariff on $12 sneakers is 37%, and that ..
Explain why it is not possible for one agent to have a comparative advantage in all goods, a worked example with calculated values would be useful.
Assuming that LRR =25%, the Fed decided to apply a Monetary Expansion Policy using the Discount Rate Policy in the amount of $145,000,000 of Borrowed Reserves. Explain in words and numbers what does this monetary policy mean. that is what does this s..
Illustrate what is the marginal revenue from selling another book for the author. Explain how does it compare to the marginal revenue
How does subsidy affect consumer surplus, producer surplus, tax revenue and total surplus. Does a subsidy lead to a deadweight loss.
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