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A professor of engineering economics owns a 1996 car. In the past 12 months, he has paid $2000 to replace the transmission, bought two new tires for $160, and installed a CD player for $110. He wants to keep the car for 2 more years because he invested money 3 years ago in a 5-year certificate of deposit, which is earmarked to pay for his dream machine, a red European sports car. Today the old car's engine failed. The professor has two alternatives. He can have the engine overhauled at a cost of $1800 and then most likely have to pay another $800 per year for the next 2 years for maintenance. The car will have no salvage value at that time. Alternatively, a colleague offered to make the professor a $5000 loan to buy another used car. He must pay the loan back in two equal installments of $2500 due at the end of Year 1 and Year 2, and at the end of the second year he must give the colleague the car. The "new" used car has an expected annualmaintenance cost of $300. If the professor selects this alternative, he can sell his current vehicle to a junkyard for $1500. Interest is 5%. Using present worth analysis, which alternative should he select and why?
Develop a four- to five-page paper in which you analyze the Public Budget Cycle in a government agency of your choice. Be sure to include each of the phases of the budget cycle (preparation and submission, approval, execution and audit, and evaluatio..
Suppose the real wage remains unchanged between year 1 and year 2 but the nominal wage increases from $20 to $24.Based on this information, we can conclude that the price level has:
Consider the following game: There are 3 players. Each player decides whether to work on a common project or not. The project is successful only if 2 or more players work on it. When the project is successful, each player who works on the project obt..
Bradley collects historic memorabilia, and one of his prized possessions is the pistol used by Aaron Burr in his duel with Alexander Hamilton. After reading an article in a magazine, Bradley discovers that Sam owns the matching pistol, used by Hamilt..
Which of the following are competing national identities that the Crittenden Compromise attempted to reconcile? sectional and regional federal and congressional American and southern northern and western.
Imports, exports, and the trade balance The following table shows the approximate value of exports and imports for the United States from 1983 through 1987. Complete the table by calculating the trade surplus or trade deficit both in absolute (dollar..
What would be the total profit of the firm if it sells the entire output at a cost of Rs. 60 per unit.
Ike's Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company's short-run average t..
Make a graph for each and then explain your graphs. (Hint: for the natural rate of unemployment, consider only the structural unemployment caused by minimum
Equilibrium in oligopoly is different from other market structures because:
A local newspaper headline? blared, "Bo Smith Signed for? $30 Million." A reading of the article revealed that on April? 1, 2014, Bo? Smith, the former? record-breaking running back from Football? University, signed a? $30 million package with the Da..
Sometimes, when a country is going through economic difficulties, the government will restrict how much money people can withdraw from their bank accounts.
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