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You supervise an aging production line that constantly needs maintenance and new parts. Last month you spent $25,000 replacing a failed controller. Should the following plan be accepted if the interest rate is 15%? The net installed cost of the new line to replace the old line is $600,000 with a useful life of six years. In the first year its operating cost will be $100,000, and it will generate annual revenues of $300,000. Each year the operating cost will increase by $5,000 and the revenues will fall by $15,000. After six years the equipment will have a value of $100,000 in the next re-building of the line.
q1. a father on the day his son is born wishes to determine what lump sum amount would have to be paid into an account
What are the necessary conditions for economic efficiency? In what four situations might a market fail to achieve ideal economic efficiency?
One Tuesday the government announces two new policies. First, you must pay a head tax (lump sum tax) of $3 a day. Second, the government will subsidize the purchase of apples (but not of oranges) so that the price of an apple falls to 50 cents. Draw ..
Proposals to reduce patent length for drugs are sometimes made, but some critics argue that such a change would result in even higher prices during the patent period as companies would need to recover drug development costs more quickly.
Comment on the conflict between efficiency and equity of the Ramsey rule.
1. What are three common types of federal taxes? 2. What are two common types of state taxes?
As she will be in a lower tax bracket. As her financial advisor, which option do you recommend.
In Komino City, the taxi industry is regulated by the Government Taxi Authority. A company can only supply taxi services, in Komino City, if it is issued a licence by the Government Taxi Authority. Suppose that the Government Taxi Authority issues on..
We learn in SPSS Chapter Two and in our Textbook that there are four main types of measurement scales
What are the effects of multiple group memberships and saliency on one's social identity?
Horizon Wireless must rebuild a cell tower recently destroyed by a tornado. If made of normal steel, the tower will cost $40,000 to construct and should last 18 years. Maintenance will cost $1,000 per year. If corrosion resistant steel is used, the t..
Private savings, government savings and the national savings of the economy V. Is private saving the same as aggregate investment?
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