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A boiler was bought for P1,500,000 cost of installation and shipping amounted to P200,000. The estimated salvage value after 20 years is 10% of the unit cost. Twelve years later the boiler will be rehabilitated at a cost of P300,000. Salvage value and economic life were expected to increase by P50,000 and 5 years respectively. Using the sinking fund method with 10% interest, determine the book value at the end of 18 years.
Economics of Risk and Uncertainty Applied Problems Please complete the following two applied problems. Show all your calculations and explain your results. Problem 1: A generous university benefactor has agreed to donate a large amount of money for s..
Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $2. r = 20%. The available supply is 20 units. Calculate the allocation of outputs across the two periods that maximizes the present valu..
Discuss economics and other reasons for a pro free trade viewpoint for Canada? Points and paragraph form.
The Fed along with many other central banks in the world has adopted the policy of inflation targeting. Explain what is inflation targeting. What are the advantages and disadvantages of inflation targeting? What is the main difference between Inflati..
How does international trade affect economic well-being?
Should courts play a direct role in evaluating such administrative performances as the funding and operating of a prison system? Of a public school system?
Why is the price elasticity of demand for Coca-Cola greater than price elasticity of demand for soft drinks generally? Briefly discuss.
In 2001, an outbreak of hoof-and-mouth disease in Europe led to the burning of millions of cattle carcasses. What impact do you think this had on the supply of cattle hides, hide prices, the supply of leather good, and the price of leather goods? Can..
Compute most favorable output also profit for each firm and the market price. Also, compute the resulting profit of cartel.
Explain how the introduction of a new technology can influence demand incase of music and film industry.
Evaluate your company in terms of its ethical characteristics: what makes it a force for the good? How does it contribute to the well-being of its communities?
Some lenders charge an up-front fee on a loan, which is subtracted from what the borrower receives. This is typically described as "points" (where one point equals 1% of the loan amount). The federal government requires that this be accounted for in ..
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