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The world's largest carpet maker has just completed a feasibility study of what to do with the 16000 tons of overruns, rejects, and remnants it produces every year. The company's CEO launched the feasibility study by asking, why pay someone to dig coal out the ground and then pay someone else to put our waste into a landfill? Why not just burn our waste? The company is proposing to build a $9million power plant to burn its waste as fuel, thereby saving $2.4million a year in coal purchases. Company engineers have determined that the waste-burning plant will be environmentally sound, and after its sic-year study period the plant can be sold to a local electric utile for $4.6million
A) What is the IRR of this proposed power plant?
Be sure to clearly indicate what happens in the market for loanable funds, to net capital outflow, and in the market for currency exchange.
In this forum, share your thoughts on what you feel is the most important environmental issue we face Be specific and include at least one link to a specific (factual - not a blog) website or internet article that deals with that issue and a brief ov..
If the CPI was 110 last year and is 121 this year, what is this year’s rate of inflation? In contrast, suppose that the CPI was 110 last year and 108 this year. What is this year’s rate of inflation? What term do economics use to describe this second..
Capital mobility is fairly low, so the Fe curve is less shallowly sloped than the LM curve. The currency floats. What will happen if the country pursues than the LM curve. The currency floats. What will happen if the country pursues an expansionary f..
The quantity of pizzas demanded soared the following week from 1 pie an hour to 100 pies an hour. Illustrate what was price elasticity of demand for Domino's pizza.
U.S. is currently suffering from underemployment and excessive current account deficit. What measures can U.S. take to move away from its present situation towards internal and external balance? Consider rules of Bretton Woods and policy tools.
Iggy only consumes two goods: coffee and cigarettes. Three cigarettes can be traded for one cup of coffee in a free market, or one cup coffee can be traded for three cigarettes. Find an equation that gives every bundle of cigarettes and coffee that I..
What problem is the economy facing? Assume you are a governor on the Federal Reserve Board of Governors. What type of policy (easy money or tight money) would you recommend to fix the problem you identified in question 1? What could happen in the eco..
You recently hired an economist to work with engineering also operations experts to estimate the production function for a particular line of office chairs.
Will it shift to the right or left? Where will the equilibrium be on the LRAS now? What is the correct answer here and why?
Cost of a part increases by 3$ every 6 months. If the cost for the first semiannual period is expected to be $85, what is the present worth of the cost for a 4-year time period at an interestrate of 1% per month?
Demonstrate the short-run effect of this tax cut using the IS-LM model also the AD-SRAS-LRAS model. Illustrate what will take place to o/p also the interest rate.
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