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Due to expanded growth in a certain portion of the city, a new waste truck capacity is needed. An additional truck can be purchased now to replace the presently owned assets. The city uses a 5% interest rate for project evaluation. It is economically viable to buy the new waste truck?
New model
Present value $72,000
Annual Cost 12,500
Annual Savings 31,000
Salvage value 7,200
Life in years 10
a) PW= -326,256.87
b) PW= 70, 851.45
c) PW= $75,271.53
d) PW= 191,097.03
Explain why might it be appropriate for the government to allow a pharmaceutical company to have a monopoly in the production of a drug.
illustrate and explain how each of following would affect market value of US dollar. Canada experiences severe deflation. US engages in an expansionary monetary policy.
Suppose that average household in a state consumes 800 gallons of gasoline per year. A 20-cent gasoline tax is introduced, coupled with a $160 annual tax rebate per household. Will household be better or worse off under new program.
A decrease in the wage rate
The settlement requires KopyKat to pay the employee $10,000 per month for the next year. Determine the optimal price and output for the firm under these new conditions.
Rex Hofer has determined that demand for his product is given by Q = 180 - 5P and a cost equation given by C = 75 + .3Q. Determine the optimal price and quantity for the firm. Suppose that costs change to C = 25 + .4Q. Determine the new optimal price..
Briefly discuss what measuring inequality involves, and provide two examples for doing so. measuring income inequality means dividing up the population into various groups and then comparing the groups.
Discuss what will happen in this market as it moves to a new equilibrium. If a hard freeze eliminates Brazil's premium coffee crop, what will happen to the price of premium coffee.
With the rise of the Video on Demand market, which threat is likely to have the least impact on Netflix’s streaming service business?
Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, Illustrate what was the real interest rate you paid.
Also during that first year, the cookie business incurred costs that required outlays of money amounting to $9,000. What was Zach's economic profit (loss) for the year.
q. consider a market where demand is p10-2q and supply is pq2. there is a consumption positive externality of 2.5unit
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