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An open pit mine must fund an account now to pay for maintenance of the pit mine in perpetuity (after the mind shuts down in 30 years). The cost until shut down are part of the mine's operating cost. The maintenance costs begin in 31st year at $300000 annually.
1. How much must be deposited now if the fund will earn 5% interest?
2. How much does this change if the interest rate is 4%?
Riley deposits $4,000 cash in her checkable deposit at Fershur Bank. If the desired reserve ratio is 5%, Fershur Bank’s
q.suppose that in free zone the cycle presented in the problem 6 the aggregate supply curve is short plasterboard cafos
A contractor must choose between buying or renting a crane for the duration of a 5 year construction project. The contractor uses an MARR of 8%. At the end of the project, the crane can be sold for 21% of its initial cost. The cost to operate and mai..
Why are some producers forced to sell their products at the prevailing market price?
Super Cola is also considering the introduction of a root beer drink. The company feels that the probability that the product will be a success is .6. The payoff table is as follows: Success (s1) Failure (s2) Produce (d1) $250,000 -$300,000 Do Not Pr..
Suppose that a firm's production function is given by Q=K^0.33L^0.67, Where MPK=0.33K^-0.67L^0.67 and MPL= 0.67K^0.33L^-0.33. As K increases, what happens to the marginal product of labor? Why would the MPL change as K changes? What happens to the ma..
Iran subsidizes gasoline, leading to a cost to consumers that is one-fifth the market cost.
What do you believe is the single most influential force in today's society that sets the tone for an individual's personal values and why? Does this force affect Christians positively or negatively? What is your advice regarding this influential for..
Identify two examples of a paradox in health care and pair each with an imperative for change from the Summary of the IOM Report, Best Care at Lower Cost: The Path to Continuously Learning Health Care in America. Discuss a possible policy solution to..
West Paragon, a developed economy, has been experiencing stable and low inflation for the last two years. There is consensus that the current unemployment rate of 4 percent is also its natural rate of unemployment.? In claiming that an expansionary m..
An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price of $2/unit of food. Would the consumer prefer to get $100 in food stamps or $100 in cash? You need to justify your answer t..
Country A has 30,000 units of labor and can produce 2 goods, manufactures and food. A’s producers take 3 units of labor to produce one unit of manufactures and 12 units to produce one unit of food. What is the price of manufactures in terms of food a..
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