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A firm contemplating replacing a computer (D) it purchased three years ago for 6,000. In two year it will have a salvage value of 800. Operating maintenance costs have been 1,000 per year. The computer currently has a trade in value of 3,000 toward a new computer (C) that costs 5,000 and has a five year life. The new computer will have annual operating and maintenance costs of 500 per year and a expected salvage value of 1,000 at the end of five years. Company's policy demand that any computer should be replaced after 5 years in service. determine if the computer should be replaced. use a 9% rate of return. a. EACc = 2,322.63 and EACd = 1,618.36, should not be replaced b. EACc = 1,618.36 and EACd = 2,322.63 , should not be replaced c. EACc = 1,637.62 and EACd = 1,618.36 , should be replaced d. EACc = 1,618.36 and EACd = 2,322.63 , should be replaced
Reconsider the "double marginalization" model. Solve for the equilibrium input price and final price when there are N downstream firms compete in Cournot fashion.
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What literature you are reviewing and how it contributes to your research question. You might want to consider areas such as additional readings on theory, policy relevance, debates and existing findings.
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