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A mechanical engineer must recommend an A/C system to a commercial building owner. The owner intends to own the building for at least 10 years. A conventional split system has a design life of 10 years, a cost of $55,000, and annual operating costs of $14,000. A chilled water system has a design life of 10 years, an initial cost of $60,000, and annual operating costs of $12,000. Using a rate of return of 9%, determine the present worth index of the incremental investment up to the chilled water system. Express your answer to two decimal places.
Many cities have experienced a substantial decrease in the amount of garbage being collected after they changed from levying a tax on each household to pay for the pickup to charging a fee for each bag or can picked up. Would this have been the resul..
Suppose a tax cut affected aggregate demand and aggregate supply. The shift in aggregate supply would make the
Suppose a monopolist has cost curve C(q) = 10 + 3q + 0.1q 2 and faces demand q = 12 ? p. Find the monopolist price and quantity. Return to the situation in (a) with only one market. What would be the monopolist profit?
Keeping your money in a bank seems like a good idea. However, from time to time, depositors lose confidence in banks. we learned that when many people lose confidence in a bank at the same time it is called a “bank run”, and when this happens to many..
China's official reserve requirement ratio for most banks will be 20.5 percent after the latest increase takes effect (bank's reserve requirement ratio by a half percentage point, effective Thursday). What was the money multiplier in China? a) Before..
After reading about the Solow growth model, which concludes that continued economic growth requires continual innovation, and Schumpeter’s dynamic growth model, does the combination of these two models provide an adequate model of technological chang..
The present value of a dollar rises as
When medical care is reimbursed through employer provided insurance whose welfare is ultimately affected when cost of medical care rises: the owners of the firm that pays the premiums, the government whose revenues are reduced because insurance benef..
Explain the "common interest logic" and the "economic logic" of group behavior in terms of the likelihood of the success of groups.
A company has an investment project that would cost $40 million today and yield a payoff of $58 million in 4 years. Should the firm undertake the project
Explain demographic transition and how technological advances affect the birth and death rates. Explain the Malthusian debate. Explain the controversy around population control. Can the world sustain such a huge population growth?
(GAME THEORY) Consider two colonels A and B ruling two opposing armies. Each colonel has 120 soldiers in their armies and there are 6 battlefields. Suppose colonel A and B distributes their armies as follows; A : 20 20 20 20 20 20 B : 21 21 21 21 20 ..
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