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A mechanical engineer who recently graduated with a master's degree is contemplating starting his own commercial heating and cooling company. He can purchase a Web Page design package aimed at delivering information only for $1,000 per year. If his business is successful, he will purchase a more elaborate e-commerce package costing $4,000 per year. If the engineer purchase the less expensive package now (beginning-of-year payments) and he purchases the e-commerce package 4 years from now (also beginning-of-year payments) what is the equivalent annual worth of costs for the website for a 10-year period (years 1 through 10 at an interest rate of 10% per year?
Calculate the predicted probabilities and verify that all the ?tted values are between 0 and 1. What is the smallest value you observe? And the largest?
if demand is unit elastic (the elasticity is 1), a 1% price cut increases the quantity sold by 1% and total revenue does not change. the question is: Assume the initial price is 1 and the initial quantity demanded is 1, thus the total revenue is 1..
Plot the levels and first differences of lnrgdp and lnrstockval and briefly comment on the graphs and obtain and comment on the variance decompositions for 24 periods ahead based on the original ordering of the variables.
Consider a consumer that chooses a bundle of leisure time (r) and a composite good (c) to maximize the utility function U(c, r) = c + 16(r1/2), where c is the number of units of the composite good consumed, and r is the number of hours of leisure ..
Lane college in Jackson, Tennessee is considering the conversion of an abandoned church pew manufacturing plant adjacent to the school's campus into a 34,000 square foot building to house the campus bookstore, a conference center, a small business..
According to the neo-classical theory of wage setting, discrimination should be gradually weeded out of the labour market. Explain why this should be the case according to that theory. Discrimination, however, seems to endure.
Gail Dribble is analyzing the shares of Petscan Radiology. Petscan's stock pays a dividend once each year and it just distributed this year's $0.85 dividend. The market price of the stock is $12.14. Gail estimates that Petscan will increase it div..
Currently there are zero excess reserves in the U.S. banking system. If the required reserve ratio is 20 percent and the Fed sells 20 million in bonds, the maximum amount that the money supply can change is what
In an attempt to increase revenue and profits a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is -15 and the advertising elasticity of demand is -+0.6 would you expec..
You win $100 in basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 5 percent interest. What is the opportunity cost of spending the $100 now
Today you have a savings account of $15 620. Based on an annual interest rate of 4.2%, what equal amount can you withdraw from the account at the end of each month for three years and leave $4 000 in the account
Assume that gross private domestic investment is $800 billion and the government (state, local, and federal combined) is currently running a $400 billion deficit. If households and businesses are saving $1,000 billion, what is the value of net exp..
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