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A heat exchanger cost $7500 in 2005 and must be replaced soon with a larger unit. The present unit has an effective area of 250 feet and its replacement should have an area of 350 feet. Replacement is anticipated in 2015 when the price index is estimated to be 170 where it was 115 when the exchanger was first purchased. Estimate the cost today if the cost capacity factor is 0.6.
They could each decide to work a few extra hours on Saturday and earn more income. But they choose to play tennis or to relax around the house.
Suppose you had one of the three winning tickets in last week’s Powerball Lottery; your prize would have been $188 million if you took your winnings in the form of an annuity. If the annuity were paid in 20 annual instalments using an interest rate o..
sales in joint facilities are lower than sales in two separate facilities. Elucidate what do these numbers imply for the decision of when to open a shared facility versus two separate facilities.
Suppose that aggregate planned expenditure increases by $0.75 trillion for each $1 trillion increase in real GDP. Compare the shift of the AD curve with the $1 trillion increase in investment. Explain the magnitude of the shift of the AD curve.
A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 150- 0.01 x Demand for an annual printing of this particular product.
Suppose the mayor is suggesting an increase in gas taxes that would affect the commute costs and thus bid rent curves for residents Pr=5.5-0.75x. Calculate the new size of the city.
A forklift truck costs $29,000 now. A buyer agrees to purchase such a truck with a single payment for the balance due in 1 year. The seller offers two interest schedules: a rate of 6%, compounded yearly, or an annual rate of 5%, compounded continuous..
Describe return to an investment in a college education. How would you go about measuring it. How would you decide it is good enough to warrant investment.
discuss several ways in which greater educational opportunities for young women could lead to faster economic growth in these countries.
How we justify assumption that individual demand curves have a negative slope. If y do not, then we may not be able to add them to get market demand.
Tight (contractionary) money policy
What is contractionary fiscal policy? What is the purpose of contractionary fiscal policy? What are the possible contractionary fiscal policy solutions? What is built-in stabilizer in fiscal policy?
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