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A new machine would cost $18,000, have operating costs of $1,000 in the first year, and have a salvage value of $10,000 at the end of the first year. For the remaining years, operating costs increase each year by 15% over the previous year’s operating costs. The salvage value declines each year by 25% for the previous year’s salvage value. The machine has a maximum life of seven years. An overhaul costing $3,000 and $,4500 will be required during the fifth and seventh years of service, respectively. The firm’s required rate of return is 15%. Find the economic service life of this new machine.
Define the wage gender gap as the difference in mean earnings between men also women.
Define economic growth, and explain what it means in terms of standards of living. Explain how a technological advance can contribute to economic growth. Why do institutions such as private property rights promote economic growth?
A proposed $2.5 million dollar investment at a 70 MGY (million gallons a year) facility will save the facility $800 k/ yr in energy costs. Assuming an interest rate of 5%/ yr, and equipment expected life of 10 years. Should the facility make this inv..
What Should we be Doing with Welfare Policy and Why? You are asked whether current antipoverty policy meets three generally accepted goals of helping, preserving work incentives, and minimizing cost and what changes you would favor and why.
Moldovan authorities declared not only once that y want to sign an agreement with IMF that would not envisage Moldovas financing. Can fund accept such a scenario.
The Occupational Safety and Health Administration promulgates safety and health standards. These standards typically apply to machinery (capital), which is required to be equipped with guards, shields, and the like. An alternative to these standards ..
Analyze two categories of foreign base company income - create a scenario suggesting how a U.S. domiciled multinational entity (MNE) can use a CFC to defer income using one (1) of the categories you analyzed.
Suppose autonomous consumption is $500, government spending $1,000, panned investment is $1,250, and net exports are -$250 and the MPC is 0.8. What is the equilibrium value GDP?
What is retained earnings. What items increase balance in retained earnings. What items decrease balance in retained earnings.
What is the firm's profit-maximizing (or loss minimizing) output (Q) level? What is the amount of its economic profits (or losses) at this output level? What would be the firm's decision at this price/output level?
The following shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost MC: Compare the demand conditions in each market; i.e. how do the two markets diff..
Suppose the monopolist is regulated to charge a rate which covers all unit cost and total cost, what is this rate and how many units will the monopolist produce?
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