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A state highway department is trying to decide whether it should “hot-patch” a short section of an existing county road or resurface it. If the hot-patch method is used, approximately 300 cubic meters of material would be required at a cost of $700 per cubic meter. Additionally, the shoulders will have to be improved at the same time at a cost of $24,000. These improvements will last 2 years, at which time they will have to be redone. The annual cost of routine maintenance on the patched up road would be $5000. Alternatively, the state can resurface the road at a cost of $850,000. This surface will last 10 years if the road is maintained at a cost of $2000 per year beginning 3 years from now. No matter which alternative is selected, the road will be completely rebuilt in 10 years. At an interest rate of 8% per year, which alternative should the state select on the basis of an annual worth analysis?
Benson manufacturing company is considering ordering electronic components from three different suppliers. The supplier may differ in terms of quality in that the percentage of defective components may differ among the suppliers.
what rate of interest would she need to obtain her goal. Are cash payments that companies make to shareholders. Are cash payments that companies make to shareholders.
Suppose that the government raises the minimum wage to $10.10. Thinking of the four Marshall's Rules of Derived Demand as they apply to a particular industry, analyze the conditions under which job loss among teenage workers in that industry would be..
The various estates in land described by the author of your text in Chapter 3 arose mostly out of the struggle between the English Crown’s need for revenue and the efforts of the holders of the land to avoid taxes. Are these estates useful in this da..
Describe Excess reserves make a bank less vulnerable to runs. why, then, don't bankers like to hold excess reserves. What circumstances might persuade them that it would be advisable to hold excess reserves.
As a result of several factors, aggregate demand decreased during the Great Depression. One factor would be:
Christine bought a BMW when she came to LA as a County Judge. The BMW was purchased by taking a loan that was to be paid off in 20 equal, quarterly payments. The interest rate on the loan was 12% per year with quarterly compounding. What was the amou..
Explain how the following events will affect the demand for money according to the portfolio theories of money? demand: The economy experiences a business cycle contraction. Brokerage fees rise?, making bond transactions more expensive. The stock mar..
Recently, when the cost of oil was ~$100/barrel the US made a significant investment in the form of tax breaks and subsidies to producers of ethanol to assist in the development of production of ethanol from biomass, including corn. Discuss the susta..
Given the figures provided, calculate the GDP for the country, using the Expenditure Approach ONLY. Show your work. National income = 1,000, personal consumption = 3,000, net private domestic investment = 1,500, government purchases = 2,000, exports ..
In a piece dated October 15, 2014 and released by the Indiana University Center on Congress, author and retired member of the US House of Representatives Lee H. Hamilton made the following comment about corruption in politics: “Maybe it’s time we loo..
Decrease in demand is represented by a
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