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Alexander Industries is considering the purchase of a new machine for the production of latex. Machine A costs $4,900,000 and will last for five years. Variable costs are 35% of sales and fixed costs are $170,000 per year. Machine B costs $8,100,000 and will last for eleven years. Variable costs for this machine are 30% of sales and fixed costs are $130,000 per year. The sales for each machine will be $10 million per year. The required return is 10% and the tax rate is 35%. Both machines will be depreciated straight-line over their lifetimes. What are the equivalent annual costs of each machine? Which machine should Alexander Industries select?
He lives in the other house and pays $20,000 in dividends per year. If he were to rent the house in which he lives, he could earn $17,000 per year in rent. How much do the housing services provided by these two houses contribute to GDP?
Is the information presented in the book true or reliable? Is there relevant information the author does not present which would lead to a different conclusion?
A single price monopolist faces a demand curve given by Q=200-2pand has constant marginal (and average total cost) of 20. What isthe economic profit made by this profit-maximising monopolist?
Sketch a supply and demand graph to explain this change. Be sure to label your graph and clearly indicate the change of the curve.
Write a paper about the economic history of a Canadian town or city of your own choosing (Please write about any City in Ontario). You might want to discuss the economic growth and development of your city.
What are the main concepts that we study in macroeconomics.
question 1 briefly define the following termsa.nbspnbspnbsp business cycleb.nbspnbspnbsp real gdpnbsp2. why are
Should a country's income be distributed to its members based on their contributions to production of that total income or according to the member's requires?
The annual demand for coffee by the U.S consumers is Q = 250 - 10P. Compute the lost consumer surplus?
Assume that (a) the price level is flexible upward but not downward and (b) the economy is currently operating at its full-employment output. Other things equal,how will each of the following affect the equilibrium price level and equilibrium level o..
Discuss the importance of language as part of culture. What are the main forms of language? How can knowledge of a foreign language improve an individual's understanding of a foreign culture?
Draw a diagram describing autarky and a pattern of comparative advantage for your example.
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