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Beth bought a computer 3 years ago for $3000, which she can now sell on the open market for $300. The local computer shop will sell her a new system for $4000, inlcluding the new graphic software that she wanted, although, she can cope with the software that she currently owns. Her own comptuer will last 2 more years, and will then have a salvage value of zero. The new computer will have a salvage value of 300 at the end of its economic life in 5 years. The net benifets of the new computer including the graphic software have a value of 800 per year. An adiitional feature is that the computer shop will give her 500 for her old computer on a trade in.
Interest = 15%
What is the equivilent annual cost for keeping her computer?
What is the equivilent annual cost for swithcing to the new system?
Sal's Pizza Shop has a unique recipe for pizza, and currently its optimal price is $20 per pizza at a quantity of 200 pizzas per week. Its marginal cost is $12 per pizza when it produces fewer than 180 pizzas per week.
Assume that product A requireds .5 hour per unit and B requires .25 hour per unit. If both products must go through the same manufacturing machine and there are only 30000 machine hours available per period, which product should be pushed
Two alternate schemes are proposed for heating this building. "Bottled gas" can be used for floor type furnaces, or electric radiant panels can be installed in the walls and ceiling. It is estimated that the building will be used for 5 years befor..
Suppose that an initial $40 billion increase in investment spending expands GDP by $40 billion in the first round of the multiplier process. If GDP and consumption both rise by $36 billion in the second round of the process, what is the MPC in thi..
Production of widgets (W) uses labor (L) as its only input. The production function is given by W=F(L)=8*L^.5 and the marginal productivity MPL=4/L^.5. If widgets sell for $10, the price of labor is $8/hour, and there is a fixed cost of $25.
Suppose you are a monopolist able to produce your chosen output at a constant average (and thus marginal) cost of ATC = MC = $5. You face a market demand curve given by Q = 53 - P or inverse demand given by P = 53 - Q, where Q is the output provid..
What is the sample standard deviation of weights and calculate the change in weight
A demand curve is given by the following equation: P = -2Q + 40. i) Calculate the Total Revenue when Q = 5 and when Q = 8. ii) Calculate the price elasticity of demand between Q = 5 and Q = 8. Round decimal answers to two places.
The market for qbits is initially competitive and the market demand is: P = 400 - 0.4QD . The combined marginal costs of the firms in the qbit industry are:MC =50 + 0.6Q. Calculate and show how much these firms will sell and what they will charge.
Cash Flow A B C Initial cost $15,000 $27,500 $22,500 O & M costs / year $ 1,600 $ 375 $ 1,100 Annual cost savings $ 7,000 $ 9,500 $ 9,000 Salvage value $ 3,000 $ 7,250 $ 4,500 Using incremental rate of return analysis, determine which alternative ..
A demand curve is given by QD = 600 20P. Draw the demand curve. You don't have to draw to scale. Clearly show what happens on this demand curve when the price rises from $6 to $8. Label all appropriate points, as well as numerical values for pric..
suppose in Fiscalville there is no tax on the first 10000 of income but a 20 % tax on earning between $10000 and $20000 and a 30% tax on earnings between 20000 and 30000. any income above $30000 is taxed at 40%. if your income is $50000.
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