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A new engineer is evaluating whether to use a higher voltage transmission line. It will cost $250,000 more initially, but it will reduce transmission losses. The optimistic, most likely, and pessimistic projections for annual savings are $20,000, $15,000, and $8,000. Interest rate is 6% and the transmission line has a life of 30 years. (a) What is the present worth (of cost and benefits) for each estimated value? (b) Use the range of estimates to compute the mean annual savings, and then determine the present worth. (c) Would you recommend the higher voltage line? Give both economic and noneconomic reasons.
What are the factors which led M&S to internationalize
"Suppose the market for oranges is disturbed by below-freezing cold weather that destroys much of the orange crop in the California. Predict what will happen to the equilibrium price and quantity in the market for oranges because of this natural d..
How does anarchy lead to a focus on consensus and give power to veto states and coalitions? How does ecology and sovereignty collide?
The Paradise Shoes Company has estimated its weekly TVC function from data collected over the past several months, as TVC = 3450 + 20Q + 0.008Q2 where TVC represents the total variable cost and Q represents pairs of shoes produced per week. Describe ..
Which of the following statements is true of the WARN Act?
what single payment at the end of year 5 is equivalent to an equal annual series of payments of $800 beginning at the end of year 3 and ending at the end of year 12? The interest rate is 8% compounded annually
Read the excerpt from Amy Tan’s essay “Mother Tongue.”I know this for a fact, because when I was growing up, my mother’s “limited” English limited my perception of her. I was ashamed of her English. I believed that her English reflected the quality o..
If automobile emissions controls were not mandated by law, would people willingly buy also install them
Assume a firm is currently employing 20 units of capital and 100 units of labor in its production process. Assume also that the marginal product of the 20th unit of capital is 40 units of output, the marginal product of the 100th unit of labor is 10 ..
Assume that the job separation rate s is 0.01 (1%) per month and that the job finding rate f is 0.2 (20%) per month. Assume that the labor force today (period t = 0) is 100 million. What is the steady state unemployment rate for this economy?
A kinked demand curve is most likely to occur when other firms. The difference between the price firms would be willing to accept for their goods and the price they actually receive is called. Under conditions of perfect competition, maximum profit o..
price is greater than marginal cost and average total cost is not at a minimum. How would it be possible to ‘eliminate' this waste. What would we have to give up.
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