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The Coma Chemical Company needs a large insulated stainless steel tank for the expansion of its plant.coma has located one at a Brewery that has just been closed.The brewery offers to sell the tank for $15000 including delivery. the Price is so low that coma believes that it can sell the tank at any future time and recover its $15000. The Outside of the tank is lined with heavy insulation that requires considerable maintenance.Estimated costs are as followsYear maintenance cost0 $20001 $5002 $10003 $15004 $20005 $2500
a) on the basis of a 15% before Tax MARR, what is the economic life of the insulated tank;that is, how long should it be kept?b) Is it likely that the insulated tank will be replaced by another tank at the end of its computed economic life? Explain.
State carefully the ceteris paribus assumption in this case. Do you think this simple regression of Y on X satisfies that assumption? Why or why not?
Describe the effect of this change in units on the estimated regression coefficients and their standard errors, t and F-statistics, p-values, and the value of R 2 .
Use the given utility function and the budget constraint from part A to solve for Chip's best response function for the number of hours collecting firewood taking the number of hours Holly spends (WH) as given. C. Solve for the privately optimal ..
put $20,000 on deposit on your 13th birthday at 5 percent compounded annually. On your 14th birthday, the account begins earning 6 percent. Then on your 15th birthday, it begins earning 7 percent. You plan to withdrawal equal amounts on your sixty-..
Estimate simple linear regression models for both the raw data and the logs, estimating both the intercept and the slope.
How does an expansionary monetary policy work? (Describe the steps through which an increase in money supply affects the real GDP). How does fiscal policy work? (Describe the steps through which an increase in G or TR, or a decrease in TX, affects..
Answer the following questions using the above data. Compute autonomous aggregate demand and compute the short-run output.
Smartphones require superconductors, and the production of superconductors is heavily polluting due to the use of many chemicals in the process. The damages to society are given by Ds = 10x2.a) Find the private marginal benefit, the private margina..
Suppose a random experiment can be represented by 2 sets of events ,Ai and Bj, with each pair of sub events (A1 and A2, and B1, and B2) being mutually exclusive and collectively exhaustive.
Consider the inter-temporal model of consumption of a household who has a first period income of 300 and a second year income of 330. The interest rate is 10%. The household saves 100 in period one. a) Write the budget constraint of period one and..
In your 1st position as a Finance manager you have been given responsibility for decreasing use of residential heating fuel in state. Choose one of three legislative proposals to accomplish this target
Clean Supreme is a corporation that produces and sells powdered laundry detergent in the U.S. The company has estimated the following regression equation for the demand of its Brand Z detergent:
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