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A company purchase a piece of manufacturing equipment for a rental purpose. The expected income is $10,000 the first year and increases $1,000 every year. thereafter. Its useful life is 5 years. Expenses are estimated to be $600 anually. if the purchase price is $75,000 and there is a salvage value of $25,000. The tax rate is 40% and the method of depreciation utilize by the company is the MACRS method. What is the after cash flow of this investment in year.
Explain a situation using the supply and demand for skilled labor in which the increased number of college graduates leads to depressed wages.
Assume a specific-factors economy produces two goods, cloth and food, and that when representing the output of this economy graphically, cloth is on the x-axis and food is on the y-axis. When the price of cloth increases by 5% and the price of food i..
If the price in a market happens to be above equilibrium, there will be a ___ in the market, and the price will tend to ____
Define the terms 'virtual bank' and 'fintech' and describe four 'smart banking services' which virtual banks can offer to their customers.
It is likely that supply curves for labor in individual labor markets are upward sloping. For a firm buying factors of production in a perfectly competitive factor market:
What do you think the sign and magnitude of the Cross-Price Elasticity of Demand would be between premium juices and soda.
Eddie's Precision machine shop is insured for $700,000. The present yearly insurance premium is $1.00 per $100 of coverage. A sprinkler system with an estimated life of 20 years and no salvage value can be installed for $20,000. what is the present w..
While nicotine use can be addictive for many users, it is not addictive for the so-called "social smokers".
Is there a conflict between maximizing shareholder wealth and never paying bribes when doing business abroad? If so, how might you explain the firm's position to shareholders asking why the company does not pay bribes when its foreign competitors in ..
Using Keynes' General Theory Present the basic assumptions and structure of the Keynesian income determination model.
Alternative Uno has a first cost of $10,000 and annual expenses of $3,000, whereas Alternative Dos has a first cost of $35,000, annual expenses of $2,000, and a recurring cost of $5,000 every 10 years. If both alternatives have an infinite life, whic..
Northern Shelters manufactures homes, cabins, workshops, and garages. The prebuilt walls, floors, and roofs are assembled on-site. Each year
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