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When analyzing a project's Present Value, it is acceptable to use "Net Income" in your calculations because annual "Net Income" is the same thing as annual "Net Cash Flow" for your company.
In the early 1990s, land prices plummeted in Japan, leading many bank borrowers to default on their loans. Stock prices also came down sharply, reducing the value of banks’ shareholdings. The net result was that most Japanese banks fell into severe f..
Marketing suggests lowering PT from $20000 to $15000. The size of the elasticity coefficient in #1 should tell you what is likely to happen to revenue. Explain why this is (or is not) a good marketing suggestion from a revenue viewpoint. If the impli..
Jenny, your niece, is a smart high-school student who wants to make intelligent choices for her future. Hearing of your course in business economics,
Suppose you have the following regression equation where PROD = output produced per month, LHR = labor hours paid per month, and QUAL = quality of raw materials purchased within the month, and T=trend variable: Prod = ß0 + ß1LHR + ß2QUAL + ß3T. If ß3..
Elle preferences over apples (A) and bananas (B) are represented by the Cobb-Douglas utility function; What are the optimality conditions? Explain. Derive her individual demand curves for apples and bananas as functions of the prices and income.
Suppose a firm pollutes a stream that has a recreational value only when pollution is below a certain level. If transaction costs are low.
The BlackBerry production function is Q = 2.83L1.52K0.82. Epple et al. (2010) estimate that the production function for U.S. housing is q = 1.38L0.144M0.856, where L is land and M is an aggregate of all other mobile, non-land factors, which we call m..
Explain how does the existence of money reduce the costs of making transactions relative to a society based entirely on barter.
Participate in a discussion with your classmates regarding where you see the U.S. economy in its business cycle right now, as based on the economic concepts in the textbook. Now that we learned that the real business cycle results from fluctuations i..
A company bought a piece of equipment for $250,000. The equipment has a useful life of 10 years. The company is using the seven-year MACRS property class to depreciate the asset for tax purposes. At the end of year 4, the company sold the equipment f..
a. choose a country and from last next 4 weeks collect as much current economic data data that will be released over
Explain what do you think McDonald's new launch will have a sustainable impact on its bottom line.
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