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The football coach at Midwestern university was given a 5 year employment contract that paid $225,000 the first year, and increased 8% uniform rate in each subsequent year. At the end of the first year the alumni demanded that he be fired. They agreed to buy his contract by paying him the equivalent present sum, computed using 12% interest rate. How much will the coach receive?(Teacher's note - Assumptions- you are required to compute the remaining 4 years of his contract and he gets paid in full at the end of each year. Also repeat the problem using 8% interest instead of 12%)
Various financial data for 2007 and 2008 follow. Calculate the total productivity measure and the partial measures for labor,capital, and raw materials for this company for both years.
A monopolist faces a demand curve given by: P = 105 - 3Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $15. There are no fixed costs of production.
youve recently learned that the company where you work is being sold for 380000. the companys income statement
Draw the indifference curve for U = 20. For what values of p1/p2 will the optimum be \(x_{1} = 0\) If neither x1 and x2 is equal to zero and the optimum is unique, what must be the value of x1/x2?
A mining company plans to invest $50,000 in a project. The annual operating cost is expected to be $6,000, and the annual income is expected to be $22,000. THe salvage value will be $5,000 at the end of 5 year life.
The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats, the price of luxury boats is $1 million and 240 luxury boats a week are brough. now luxury boats are taxed at 20 percent..
According to the recent CNBC and the Wall Street Journal poll, 40% of the American public approves of the way the President of the United States is handling his job. Take a random sample of n = 10 Americans. And let X equal the number who gives ap..
A used car dealer advertises financing at 0% interest over 3 years with monthly payments. You must pay a processing fee of $250 at signing. The car you like costs $6000. a) What is your effective annual interest rate
At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve crosses
The price of basketballs is $90, the wage rate is $5, and the rental rate for capital is $10. What is the short-run profit maximizing level of labor demand if capital is fixed at 40 units What are the long-run profit maximizing levels.
A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of phone calls made. Provider B doe not have a fixed service fee but instead charges $1
Real GDP equaled $9,191 billion in 2000 and $9,215 billion in 2001. Both figures are adjusted for changes in the value of the dollar using a chained price index with a base year of 1996. Which could explain the increase in real GDP in 2001
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