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A large city in the mid-West needs to acquire a street-cleaning machine to keep its roads looking nice year round. A used cleaning vehicle will cost $85,000 and have a $20,000 market (salvage) value at the end of its five-year life. A new system with advanced features will cost $150,000 and have a $40,000 market value at the end of its five-year life. The new system is expected to reduce labor hours compared with the used system. Current street-cleaning activity requires the used system to operate 8 hours per day for 20 days per month. Labor costs $50 per hour (including fringe benefits), and MARR is 12% per year. (11.2)
a. Find the breakeven percent reduction in labor hours for the new system.
b. If the new system is expected to be able to reduce labor hours by 17% compared with the used system, which machine should the city purchase?
Assume you want to test the null hypothesis that the mean value of the bill in the box is 9 against the alternative that it is less than 9.
The short run price elasticity of demand for tires is 0.9. If an increase in the price of petroleum used in producing tires causes the marketplace.
Why will the profit-maximizing rate of output for a profitable firm typically be larger than the rate of output that minimizes average total cost?
If more foreign tourists visited the United States, this would: A. lower our merchandise trade imbalance. B. lower our overall trade imbalance. C. raise our merchandise trade imbalance. D. raise our overall trade imbalance.
What happens to the money supply if the Federal Reserve Bank increases interest rates at their next meeting in September? Make sure to include the appropriate equation. Make sure to include a money graph.
Calculate price elasticity of demand for movie tickets if demand for movie tickets increases from 220 tickets to 290 tickets with the decrease in price from $12.50 a ticket to $8.50 a ticket.
Based on your knowledge of aggregate demand and aggregate supply, suggest the reasons and causes for the downward tailspin of the economy. Provide support for your response.
Illustrate the significance of resource pricing explain rule or criteria of employing for resources under pure and perfect competition.
Republicans asserted that many of president obama's fiscal stimulus spending was " wasteful and ineffective." Does the content of fiscal stimulus spending matter?
The government wants to make Medicare benefits available to more people, but to achieve this goal, it needs to make cuts in the existing Medicare budget. Applying the concepts of diminishing marginal utility, the budget cuts should be made for spendi..
Two friends Diane also Sam own also run a bar. Diane tends bar on Monday Wednesday also Friday also receives wage in addition to tips.
Illustrate what should be the construction level if fixed costs rose to $48,000 per month?
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