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Mr. Carlos Rodríguez, has some savings in a corporation financial, fruit of his work as commercial director at ABC Company, which recognizes 25% annual cash. You want to buy a taxi with your savings, with the following conditions: $3,000,000 initial installment and 30 overdue monthly installments of $300,000. Mr. Rodríguez estimates that the taxi will produce $400,000 per month and he hopes to sell it at the end of three years for $10,000,000. Is it good business?
Many economists argue as follows: “Because there is no long-run tradeoff between unemployment and inflation, there is no point in trying to shave the peaks and troughs from the business cycle.” This view suggests that we should not care whether the e..
What is the future worth of $1000 in month 1, $1040 in month 2, and amounts increasing by $40 per month through month 12, at the end of year two if the interest rate is 23.7631528% per year, compounded continuously?
Consider a nation that produces food (Qf) and clothing (Qc) according to the following production functions: Qc=sqrt (Lc) Qf=sqrt (Lf) where, Lc and Lf are the number of hours in production of clothing and food respectively. Determine the autarky equ..
What is the correlation between age and LOS based not these results and should the null hypothesis be rejected or considered?
q1. compare and contrast the way classical and keynesian theory determine the demand for money and how it is related to
The demand for a good is P= 80 - 3Q. The supply is P= 40 + 5Q. Assuming a perfectly competitive market:
Katherine Lim purchased a condominium for $50, 000 in 1987. Her down payment was $20, 000. She financed the remaining amount as a $30, 000, 30-year mortgage at 7%, compounded monthly. Her monthly payments are $200. It is now 2007 (20 years later) and..
Suppose the demand for French bread rises. Explain what happens to producer surplus in the market for French bread. Explain what happens to producer surplus in the market for flour. Illustrate your answers with diagrams.
Consider each of the following goods and services. For each, identify whether the law of one price will hold, and state whether the relative price, q g US/Foreign, is greater than, less than, not equal to 1, or equal to 1. Explain your answer in term..
Our recent recession seems to demonstrate again that expenditures and incomes depend on each other. If markets do not self-adjust, how can a decline in spending lead to a negative process that ruins an economy?
What is the capitalized equivalent cost of a dam that will cost $25 million now and will require $2 million in maintenance annually? The effective annual rate is 12%.
You will recieve annual benefit $129.5 for 10 years if you invest $1,000 today. Calculate the internal rate of return for this investment. For the above a, you can get an increase of annual benefit $25 more if you increase the investment by $141.25 t..
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