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You are considering buying a new car with a part of your student loan dollars as you really do not need the extra cash now. You have two alternatives with the following cost structures.SpeedyInitial cost = $20,000Annual operating cost = $8,000 Useful life = 5 yearsSalvage = $2,000TurboInitial cost = $16,000Annual operating cost = $6,000 Useful life = 4 yearsSalvage = $1,500
You want to evaluate these using only economic criteria. Ignore the impact of taxes and you will pay cash for the car.a. Which criterion should you use and why? What are you assuming about implementing the projects when you use this criterion?b. Given that MARR = 10%, which alternative should you choose?c. Assume that MARR is 10%. If you can get a car loan at 8% per year, would you take the loan or use your cash.
Illustrate what are the most important concepts you can learn in Economic Theory classes. How can you apply them to your life. What difference can these concepts make in your everyday life.
Suppose the demand for a product is given by P = 30 – 3Q. Also, the supply is given by P = 10 + Q.
assume that the industry you wrote about in assignment 1 wants to expand and that its only option is a merger. now the
Explain what is the stance of other developed countries on this issue.
What are the positive consequences of preventing the offshoring of U.S service sector jobs,what are the negative consequences? Do these consequences change with the passege of time?
Agya is ready to think about how many pairs he can buy. Wait a minute, what happens if any of the ladies going to AUCC spotme at the BDBs? . I will buy any jeans from the Accra mall. Oops I am not quite ready to decide how many pairs I can buy.
Outdoor Sports Corporation, with its main office in Iowa, is considering opening a branch office in Los Angeles. Under normal economic conditions, which have a 45 percent chance of occurring,
you have been tasked to brief the firms finance team on an aspect of international finance and then to lead a
Assume that tuition prices suddenly go up 20 percent. What impact will this single price increase have on the CPI.
Consider two individuals considering how many iced coffee drinks to buy during the coming week.For each person determine how many drinks will be bought during the week.
21st century electronics has found a theft problem at its warehouse and has decided to hire security guards. The firm wants to hire the optimal number of security guards.
Explain is contracting a government service out to some private firm the best way. Does it make economic sense to contract out some government services.
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