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Show work done in steps. Use benefit-cost ratio
1) The Townsville City Council is considering a proposal by the mayor to construct a recreational facility at a cost of $1.0 million. The facility is expected to have a useful life of 30 years during which operating costs are expected to average $100,000 per year. It is anticipated that one-time renovations costing $500,000 will be carried out after 18 years. Overall benefits to the community are expected to average $220,000 per year. The facility will have no salvage value. Assuming an interest rate of 5% per year, determine the benefit-cost ratio for the proposed facility. Should the Council approve the proposal?
In relating to page 256 that Sears might deliberately damage its white appliance goods. Then why do you suppose that many doctors happily take on senior patients who pay less per visit than you I and I might pay? Who might come more often to see the ..
Due to competition among firms, markets that have more firms usually have lower prices. However a study by two economists in 92 metropolitan markets in the United States found a different result for the pricing of the service of the primary care phys..
Traci consumes two goods, lemonade and pretzels. Lemonade costs $2 per glass, and she consumes it to the point where the marginal utility she receives from her last glass of lemonade is 4. Pretzels cost $3 per bag. The relationship between the margin..
Why do cotton growers spend billions of dollars to dam rivers and transport water hundreds of miles to grow cotton in California deserts?
Explain whether each of the following events shifts the short-run aggregate-supply curve, the aggregate-demand curve, both, or neither. For each event that does shift a curve, use a diagram to illustrate the effect on the economy.
Specialty Steel has carefully measured production in its new plant to determine whether it is technically efficient in production.
Suppose the equation for the demand curve for some product (X) is P = 8 - .6Q and the supply curve is P = 2 + .4Q. What is the equilibrium price and quantity? Now, suppose an excise tax is imposed on good X such that the new supply equation is P = 4 ..
Explain how each of the following variables will be affected by proposed steps that you have identified in the first part of the discussion: money supply, interest rates, inflation rate, aggregate demand, and output. Provide support for your respo..
Describe how each of these activities affects government households as well as businesses.
Tool Manufacturing has an expected EBIT of $65,000 in perpetuity and a tax rate of 35 percent. The firm has $195,000 in outstanding debt at an interest rate of 6.1 percent, and its unlevered cost of capital is 14 percent. What is the value of the fir..
Discuss income elasticity as it pertains to inferior goods and to normal goods (sometimes also called superior goods).
Suppose a student has 9 hours available to study Economics, Spanish and Psychology with an estimate of performance based on hours of study for upcoming exams. Graph the gain in scores for studying first, second, third…., ninth hour for studying a) Ec..
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