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Question: Chris Cook studied the situation described in Problem and decided that the solar system will not require the $180 of maintenance every 4 years. Chris believes future replacements of either the conventional electric water heater, or the solar water heater system can be made at the same costs and useful lives as the initial installation. Based on a 10% interest rate, what must be the useful life of the solar system to make it no more expensive than the electric water heater system?
Problem: Tom Sewel has gathered data on the relative costs of a solar water heater system and a conventional electric water heater. The data are based on statistics for a mid-American city and assume that during cloudy days an electric heating element in the solar heating system will provide the necessary heat. The installed cost of a conventional electric water tank and heater is $200. A family of four uses an average of 300 liters of hot water a day, which takes $230 of electricity per year. The glass-lined tank has a 20-year guarantee. This is probably a reasonable estimate of its actual useful life. The installed cost of two solar panels, a small electric pump, and a storage tank with auxiliary electric heating element is $1400. It will cost $60 a year for electricity to run the pump and heat water on cloudy days. The solar system will require $180 of maintenance work every 4 years. Neither the conventional electric water heater nor the solar water heater will have any salvage value at the end of its useful life. Using Tom's data, what is the payback period if the solar water heater system is installed, rather than the conventional electric water heater?
Which piece of information is more important in the utility maximization process: marginal utility per unit of the good or marginal utility per dollar? WHY?
Analyze any comparative advantages and international trade opportunities. Define the type of market in which your selected product will compete.
Use the table to answer the following questions (note: the second column is measuring real GDP, and the figure at the top of that column is 1075).
Explain the difference between the demand curve facing a monopoly firm and the demand curve facing a perfectly competitive firm.
Provide graphs that show the adjustment process in Brazil, The United States, and the world. Show (graph) what happens to the price of sugar in the United States and Brazil when they start trading with each other. Show how the world price is determ..
What did they do differently in their business practices in their supply chain? What changed in their relationship with their end consumers?
Suppose that you are hired as consultant to a firm producing a therapeutic drug protected by a patent that gives a firm a monopoly in two markets. The drug can be transported between the two markets at no cost. The demand schedule in the first mar..
Write a 750-word essay on how the Environmental Protection Agency's policies impact business in the United States
Andrew has taken out a loan for $7,000 with the following terms: interest is only charged on annual payments during the first 4 years, and a payment of the rest of the money owed at the end of the 5th year. The bank is only charging 4.17%. What is th..
Are you in energy deficiency, balance, or excess? What everyday changes, if any, might you make to increase the amount of energy expended in your day-to-day activities?
A construction company is considering changing its depreciation from the MACRS method to the historical SL method for a general purpose hauling truck. The cost basis of the truck is $90,000, and the expected salvage value for depreciation purposes is..
What are the entry methods to foreign markets? Assume that your choice is export. When exporting to a market some advantages and disadvantages effect.
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