Equal wage rates in every market of labor

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Reference no: EM138852

Q1. Suppose that all the necessary conditions exist for the realization of equal wage rates in every market of labor but that currently the wage rate in market X is higher than the wage rate in market Y. We expect that eventually the wage rate

Q2. A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows before depreciation and taxes are expected to be $5,000 per hear for five years. The firm has a marginal income-tax rate of 40%. The firms cost of capital is 12%. Compute the internal rate of return and the net present value. Should the firm accept or reject the project?

Reference no: EM138852

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