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A company has purchased equipment ( for $52000) that will reduce materials and labor costs by $12000 each year for N years. After N years, there will be no further need for the machine, and because the machine is specially designed, it will have no MV at any time. I IRS, however has ruled that the company must depreciate the equipment on a SL basis with a tax life of 5 years. If the effective income tax rate is 36% what is the minimum number of years the company must operate the equipment to earn 10% per year after taxes on it's investment >
a) Your firm must operate the equipment for the minimum ___ years to earn 10% per year after taxes on its investment.
From the list below, select the components or inputs associated with the production function where GDP is the output. There is more than one possible answer. Capital deepening, population, physical capital, aggregate supply, aggregate demand.
State whether each of the following events will result in a movement along the market demand curve for labor in electronics factories in China or whether it will cause the market demand curve for labor to shift. If the demand curve shifts, indicate w..
TT Drinks Company was established a hundred years ago and currently employs over 300 people. The company produces and sells a range of black, green and flavoured teas and fruit infusions. TT's last Director of Marketing was away from work with illnes..
Find the optimal capital and labor inputs given the production function f (k, l) = ak + bl and that the output price is given by p, the rental price of capital is r and w is the wage.
q1. why might you expect to see flat royalty payments in home-based franchises but revenue-based royalties in
Graphically elucidate how electrical monopolist would determine its profit maximizing price and output level. Identify the area of consumer and producer surplus for the profit maximizing monopoly.
Which is a tax on profits generated from mining of iron ore and coal.
Use the endogenous growth model to determine the effects of this on the paths of aggregate consumption and aggregate output overtime.
Draw the PPFs for A and B when they work for 4 hours. What if the OC of shirt for A? What is the OC of shirt for B? What is the OC of cake for B? Who will export shirts? Why?
Illustrate what cost as well as quantity will result once the patent expires and competition emerges in this market.
Over the Christmas Break, you are hired by Apple to help make the new iPad. Show completely labeled graph showing the initial equilibrium wage and quantity for the iPad labor market.
Elucidate how much does the gardener receive. How much does the customer pay. How much does the government receive as tax revenue.
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