Government puts pressure on producers for heavy equipment

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Q1. During a war the government puts pressure on producers for heavy equipment, supplies, and services, making each more important. Explain the theory about inflation does this condition represent?

Q2. The annual maintenance on the parking lot is $5000. What expenditure would be justified for resurfacing if no maintenance is required for the first 5 years, $2000 per year for the next 10 years, and $5000 a year thereafter? Assume the cost of money is 6%.

Reference no: EM138833

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