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Mighty-lite inc., a manufacturer of plastic tables for institutional use is considering a capital spending program involving annual expenditures of $100,000 for each of the next five years. the firm estimates that its annual profit of $100,000 would increase by 50 percent when the capital program was completed. Assuming the firm has a 20-year life and the appropriate interest rate is 12 percent, should the capital spending program be implemented?
1. a worker in equador can earn 3 per day making cotton cloth on a hand loom. a worker in the united states can earn 70
Explain how much pollution reduction should Appalachian Coal Mining undertake.
A company yearly sells 7,890 units. The cost of placing an order is $100 and the carrying costs are $2 a unit. What is the EOQ, the duration of the EOQ,
A firm has four different investment options. Option A will give the firm 10 million at the end of one year, 10 million at the end of two years, and 10 million at the end of three years. Option B will give the firm 5 million at the end of one ..
Describe whether each of the following would cause a shift of the aggregate demand curve, the aggregate supply curve, neither, or both.
assuming that the expectations theory is the correct theory of the term structure calculate the interest rates in the
using supply and demand illustrations and assuming competitive markets what is the effect on equilibrium price and
Define transfer payments and give an example. Describe why transfer payments are not included in GDP. Determine which components of GDP would be affected through following,
Suppose the federal reserve's trading deal buys $500,000 in T-bills from a securities dealer who then deposits the fed's check in best national bank. Use a balance sheet to show the impact on the bank's loans.
Suppose the economy is in the midst of a severe recession. Determine which of the following policies would be consistent with active fiscal policy?
One might expect company in monopolistically competitive market to experience greater swings in price of their products over the business cycle than those in an oligopoly market.
What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the U.S. businesses and consumers involved.
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