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Cost Benefit Analysis
A city has learned that by buying garbage trucks, labor costs for garbage removal would be reduced. You, the analyst, have also collected the following information:
Cost of the trucks today is $400,000Annual savings in this year's constant dollars is $90,000Trucks will last for four years, then will be sold for $100,000The city can borrow money (discount rate) at 7 percentInflation (for the next four years) is expected to average 3 percent
All the dollar amounts are in this year's dollars (constant dollars)
Assuming the costs and benefits incur at the end of the year, should the city buy the trucks.
Tom earns $15 per hour for up to 40 hours of work each week. he is paid $30 per hour for every hour in excess of 40.
Examplify this assignment as an exercise in critical thinking; your goal is to represent a party's argument as accurately and as thoroughly as possible.
It is a study guide which will help students to further research the topic.
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Assume that you are the chief economic advisor to the president of the U.S..
Let the market demand for rye bread be given by Q = 500 + I - 250P rye + 400P wheat , where Q is monthly demand in number of loaves, I is average monthly income in dollars
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