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A company has acquired a paint booth (see prices). The anticipated life for the booth is 14 years but the company plans to depreciate it as a 7 year MARCS property (half year conversion). Determine the book value of the equipment for its first six years of ownership. Note machine production assumptions.
PURCHASE PRICE: $179,170
INSTALATION AND SHIPPING: $18,518
Describe how, if at all, each of the following developments affects income, the exchange rate, and net exports in an open economy with floating exchange rates: Suppose the government wishes to lower the exchange rate, ε, but not to change real output..
What are the differences between economic and accounting concepts of cost? How are prices determined under perfect competition? How are prices determined under monopoly?
Problem 1: Assume that the long run total cost function for each firm in a perfectly competitive industry is LRTC = q3 - 4q2 + 8q and the market demand function is Q = 2000 - 100p. Calculate:
Clarke's workers are highly skilled artisans with a great deal of job mobility. What impact would the wage increase have upon the firm's employment.
What will happen to the rate of inflation? How would the central bank react to the change in velocity if it pursued an NGDP target instead of a money stock target?
You purchased an immediate annuity which pays you $3,000 each year from next year for 15 years. Assuming interest rate is 5%, how much is the equivalent present value of these payments? The future value of $1,000 saved for 20 years at 5% interest is:
The most vocal political pressure for tariffs is generally made by:
Briefly explain why the three variables are appropriate explanatory variables to predict the consumption of services or why they are related to consumption.
As the US baby boomers retire, US government budget deficits are projected to increase significantly. Explain intuitively why the supply curve in the US loanable funds market slopes upward. Begin your explanation, by considering an increase in the re..
Be sure to label all axis and curves on your graphs. Elucidate in writing to what market your derivation brings equilibrium and how it accomplishes this.
What are the key determinants of the price elasticity of demand for meals served at high-end restaurants?
When a best-selling book was first released in paperback, the Hercules Bookstore chain seized a profit opportunity by setting a selling price of $9 per book. With paperback demand given by P = 15 - .5Q, the chain enjoyed sales of Q = 12 thousand book..
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