A company desires to estimate the cost of building a 600-MW fossil-fuel plant for the assembly of its new long-distance aircraft. It is known that a 200-MW plan cost $100 million 20 years ago when the approximate cost index was 400, and the cost i..
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A telephone distribution company is considering building a new automated switching equipment substation with a useful life of 20 years. The company uses a 14% MARR to assess capital investment projects. Estimated real dollar costs and benefits
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Assume an open, mixed economy. That is, foreign trade is part of the economy, and the economy includes both a public (government) and a private (consumers and businesses) sector. Given this, aggregate demand is expressed as (C + I + G + X). Assume..
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A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are as follows: A B C Installed cost $10,000 $15,000 $20,000 Uniform annual benefit 1,625 1,625 1,890 Useful life in years 10..
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Computers are sold competitively. Each computer, such as a Dell or Compaq, contains an operating system, such as Windows, that is pre-loaded on the computer. Suppose that the price of computers is $2000, and the price of an operating system is $10..
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Identify whether the variables in your model suffer from non-stationarity. Discuss the possible implication of non-stationarity for your model and how this problem could be addressed.
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The anticipated cash dividends for Delta Electronics over the next four years are as follows: $8 in 2013, $9 in 2014, $10 in 2015, and $11 in 2016. In 2012, John is interested in buying some shares of this stock for a total of $100 and will hold t..
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Determine the reaction function for each firm. Firm 1: Q1 = - Q2, Firm 2: Q2 = - Q1 b. Calculate each firm's equilibrium output. c. Calculate the equilibrium market price. d. Calculate the profit each firm earns in equilibrium.
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a young engineer wishes to become a millionaire by the time he is 60 years old. he believes that by careful investment he can obtain a 15 percent rate of return. he plans to add a uniform sum of money to his investment program each year
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Consider the following sets of investment projects: (n) 0 -4,000 -3,500 -5,000 -4,500 1 0 1,500 3,000 1,8002 0 1,800 2,000 1,800 3 5,500 2,100 1,000 1,800 Compute the equivalent annual worth of each project at 1 = 13%, and determine the acceptability..
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The income tax system in a country requires each citizen to pay 10% of income on earnings up to $40,000, and then pay 20% on any earnings over $40,000. If an individual has an income of $92350, then what is his average tax rate, in percentage term..
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(a) If the price of x1 is 2, the price of x2 is 1, and Max's income is 10, how much x1 will Max consume How much x2 (b) Suppose that Max's income level is 10. Derive Max's demand function for x1. Is x2 a substitute of x1 or a complement of it
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