Evaluation of profitable investment

Reference no: EM1311229

1. Suppose that Florida migrant farm workers are effectively unionized. What will be the impact of the unionization on

a) the price of Florida oranges,

b) the profits of Florida fruit growers in the short run and in the long run,

c) the mechanization of the fruit picking industry and

d) the employment of fruit pickers?

2. Suppose you are contemplating the purchase of a mini computer at a cost of $1,000.00. The expected lifetime of the asset is three years. You expect to lease the asset to a business for $400.00 annually (payable at the end of each year) for three years. If you can borrow (and lend) money at an interest rate of 8 percent, will the investment be a profitable undertaking? Is the project profitable at an interest rate of 12 per cent? Provide numerical calculations in support of your answers.

Reference no: EM1311229

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