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An Asset for transportation purchased and placed in service by a petroleum production company. Its cost basis is $75,000, and it has an estimate MV of $15,000 at the end of an estimated useful life of 15 years. Compute the depreciation amount in the third year and the BV at the end of the fifth year of life by each of these methods:
(a) The SL method.
(b) The 200% DB method with switchover to SL
(c) The GDS method
(d) The ADS method
Explain the difference between accounting profit and economic profit. Which should business owners be more concerned with and why? Provide an example that would illustrate how accounting profit and economic profit differ.
How does Ticketmaster's "dynamic pricing" affect ticket sales, total revenue and profit? Does Ticketmaster provide a valuable service, or is it a necessary evil to purchasers of event tickets?
Some people claim that the "economic way of thinking" does not apply to issues such as health care. Elucidate how economics does apply to this issue by developing a "model" of an individual's choice.
A business is generating $1000 a month for the next 5 years at a nominal interest rate of 12% compounded monthly. How much cash should one pay for it?
Illustrate wwhat is the effect on the market for one hour of babysitting services in Middling today.
Suppose the United States sets a limit on the number of tons of sugar that can be imported each year. This is an example of a(n )?
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there is an incumbent monopoly in a market. A potential entrant may enter. Draw the game tree describing the situation?
If interest rates could be deducted from income, would an investor change his/her decision based on question 1.
If the price of coffee increases, we get a positive rate of inflation, even if no other price rises. Is this really inflation? Explain.
illustrate what cost-minimizing combination of K and L will the manufacturer employ for the output levels in part a.
at what interest rate would the person earn interest if the interest was compounded annually? b) if the double declining balance (200% DB) method is used, what is the depreciation amount for year 2?
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