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The initial cost of a pickup truck is $11037 and will have a salvage value of $4041 after five years. Maintenance is estimated to be a uniform gradient amount of $117 per year, with zero dollar for first year maintenance. The operation cost is estimated to be $0.31 per mile for 420 miles per month. If the interest rate is 12%, what is the annual equivalent cost (AEC) for the truck?
Illustrate what will be the effect on the level of checkable deposits.
Trevor consumes two goods: fruit (good x) and vegetables (good y). His demand for fruit is given by x(px,m)=.04m-4.24px. His income is $322, the price of fruit is $2, the price of vegetables is $1. If the price of vegetables rises to $3, calculate to..
If you were starting a soap business (laundry soap), what strategy would you use to compete with Procter & Gamble and Clorox? How would you reach your target market? How and where would you advertise? We talk about the power of word of mouth-how do y..
Assume that an investment is forcasted to produce the following returns: a 20% probability of a $1200 return; 50% probabilty of a $5600 return and 30% probabilty of $9500 return. What is the expected amount of return this investment will produce?
Which of the following hedging strategies involves a loan without a futures contract.
List five things that are held constant along a market demand curve, and identify the change in each that would shift that demand curve to the right-that is, that would increase demand.
You take your first job out of college as an engineer with a salary of $58,000 per year. You decide to contribute $2,000 into your 401K retirement plan at the end of your first year (when you are 22 years old). If you continue to contribute annually,..
q.start at the original correct equilibrium cost and quantity in part a. assume which the government wishes to decrease
Credit Card issuer have culture that focus on growth by targeting financially strapped people. Assume that you are a member of congress, what would you do? Create legislation that does not allow credit-card issuers to raise interest rates for those w..
Miguel is a 20 year old college student who works part-time and earns an annual income of $12,000. To smooth out his life cycle changes in income, Miguel can
A consumer’s income in the current period is y1= 170 and income in the future period is y2 = 150. He pays lump-sum taxes t1 = 20 in the current period and t2 = 7 in the future period. The real interest rate is 10% every period. Determine consumer’s l..
The home country has a very elastic (flat) export supply curve. The home country has a inelastic (steep) export supply curve. other things held constant, under these two situations which one will home country have a larger TOT (tariff Revenue) gain a..
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