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Question: A home builder must construct a sewage treatment plant and deposit sufficient money in a perpetual trust fund to pay the $5000 per year operating cost and to replace the treatment plant every 40 years. The plant will cost $150,000, and future replacement plants will also cost $150,000 each. If the trust fund earns 8% interest, what is the builder's capitalized cost to construct the plant and future replacements, and to pay the operating costs?
Assume that all banks in the banking system have a 10% reserve requirement. Further, assume that all banks in the banking system are fully loaned up both before and after Joe makes his deposit.
Jay Ritter, a professor at the University of Florida, was quoted in the Wall Street Journal as saying about Facebook: "It's entirely possible for a company to have solid growth prospects while its stock is overvalued." What does it mean to say tha..
If the government places a price ceiling of $2 on milk, will there be a shortage or surplus of milk? How large will it be?
Discuss how Internet security measures can actually create opportunities for criminals to steal, rather than prevent them.
There are four of you in a group- representing the individuals with currency in an economy. Each of you has $100. Use this information to answer the following questions. Additionally, all banks abide by a reserve ratio of (1/5), regardless of scenari..
Sam and Olivia decide to go into business, selling discounted merchandise during their Website "e-Buy." They sign a partnership agreement that requires Sam to contribute $12,000 and Olivia to contribute $8,000 in capital to start the firm.
Find the first order conditions and find the asset demand function for a when utility takes the log form, as in 1B above.
Describe in your own words how a perfect competitor maximizes its profit, and why its profit is zero in the long run?
Based on your research of the particular industry your article is discussing, How many firms dominate the market that the article is discussing
Summarize the economic benefits associated with any three chemical uses. Be as specific as possible.
Tim Hortons' Risks Tim Hortons has exploded to become a dominant player among quick-serve restaurants. In 2001, it took the risk by switching to centralized.
Express his MRS of good Y for good X. As the amount of X relative to the amount of Y along the same IC, does the absolute value of the MRS increase or decrease?
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