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A mining development needs a railroad branch line. The expected operational life is 25 years after which the site will be restored and the track re¬moved. The line can be built with untreated wood ties that cost $25 installed and have a 6-year life or with treated wood ties that have an installed cost of $40 and a 10-year life. When ties are removed from service, they can be sold for $3 or if they have at least 4 years of life left, then they can be used elsewhere. The salvage value for that is estimated at $10. If the firm's inter¬est rate is 12%, should treated or untreated ties be purchased initially, and what is the best plan for a replacement pattern?
American and Japanese workers can each produce 4 cars a year. An American worker can produce 10 tons of grain a year, whereas a Japanese worker can produce 5 tons of grain a year. To keep things simple, assume that each country has 100 million work..
Which of the following best describes the impact of this belief on demand for loanable funds and interest rate?
The owners of a small manufacturing concern have hired a manager to run the company with the expectation that (s) he will buy the company after five years. The goal of the owners in making this hire is to find the appropriate manager that will increa..
Is the equilibrium price higher or lower, or is the change indeterminate. Is the equilibrium quantity higher or lower, or is the change indeterminate.
If a policy is Pareto optimal:
According to the IS-LM model, what happens to the interest rate, income, consumption, and investment under the following circumstances? Support your answer with suitable diagrams.
It was reported that Japan's fishing, aquaculture (tuna and salmon), food processing factories and cold storage areas had been badly affected.
The United States has suffered several weather-related disasters in recent years, including Hurricane Katrina, Superstorm Sandy, and numerous devastating tornados and floods. Why, then, doesn’t the Federal government simply order the Bureau of Printi..
Illustrate what might cause the world interest rate to rise.
On a graph where the total income is on the horizontal axis and the number of tasks is on the vertical axis, why does the piece rate appear as a straight line? Show that if the piece rate goes up, the line become flatter.
Find the cost functions for the following firms: A firm with production function f(x1,x2) = min{ 2xl,3x2} A firm with production function f(xl,x2) = 2x1 +3x2 A firm with production function f(x1,x2) = In
According to Kulish, what is about the design of the euro currency that lessens its appeal compared to prior national currencies?
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