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1. A personal property asset has a purchase price of $80,000 and an installation cost of $20,000. Book depreciation method is DDB (α = 2/N) with switching to straight-line method with a 7-year depreciable life and zero salvage value. What is the allowable depreciation for year 6?
a) $4,033
b) $4,958
c) $3,703
d) $8,677
2. Convert a constant dollar payment of $1,000 made 6 years from now into actual dollars in that same time period (i.e. 6 years from now) Given that market interest rate i = 10%, inflation rate f = 5% annual.
a) $1,276
b) $822
c) $1,340
d) $2,013
Assume your elasticity of demand for your parking spaces is -0.5 and price is $20 every day. If your MC is 0 and your capacity at 9 a.m. is 96% full over the last month are you optimizing.
what might prompt the government to establish this price ceiling? next suppose that the government establishes a price floor of $4.60 for wheat. what will be the main effects of this price floor?
Two firms are competing for output. The leader firm knows the market demand to be P=1200-Q with the follower firm demand Q2=400-0.5Q1. Both marginal costs is $200. How much will the leader firm produce?
q.1. suppose that ex is the exchange rate among the u.s. dollar and the chinese yuan in that ex indicates the number of
Elucidate why a system of marketable polution permits leads to less costly pollution abatement and a higher concentration of polluted areas tha a command - and control system.
illustrates the likely effect on the marketplace for eggs. Indicate in each case the impact on equilibrium cost also equilibrium quantity.
Explain your reasoning also explain Illustrate what she needs to do methodologically to make a stronger case.
Movie time is a theater chain thinking of opening a new theater in a town. It is trying to decide whether to build a large theater or a small one. Estimates indicate that the small theater size would be large enough to handle demand, but Movie time i..
Suppose the Fed decided to purchase $50 billion worth of government securities in the open market. What impact would this action have on the economy? Specifically, answer the following questions:
illustrate what can you say about cost elasticity of demand for DVD players. Will cost reduction necessarily lead to an increase in profits for DVD player manufactures.
Suppose taxes are measured in cents as in the first case, but consumption is measured as gallons consumed every month.
explain why the actual increase in M-1 will be smaller than that indicated by the over smplified multiplier.
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