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Your firm is considering either leasing or buying some new equipment that belongs in a 20% CCA class. The lease payments will be $5,600 a year. The purchase price is $15,900. The equipment has a 3-year life after which time it is expected to have a sale value of $400. Your firm borrows money at 7.5%, and has a 35% tax rate. What is the net advantage to leasing?
If a pharmaceutical company knows that one of its products has a dangerous side effect, but does not disclose that to its customers, then the market for that product is likely
Consider an economy whose production can be characterized by the following production function: Yt = 2K^5 N^5. Write the production function in per worker terms. Draw a graph
Each scenario below gives some information about price elasticity of demand. For each, calculate the missing data, and determine if the price change under consideration will i
Everett McCleskey, a local business person, is a good friend of Al Miller, the owner of a local candy store. Every day on his lunch hour, McCleskey goes into Miller’s candy st
Case Study - Technology and Economic Change and what are the causes of economic growth in potential output in the long-term? Apply the theory to illustrate and explain your a
A company that produces toys is considering backward integration into production of a certain type of oil, an important component in making the rubber-like material required f
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semi-annual interest payment. Th
Describe the prevailing arguments of what constitutes a "just war," and assess the justice of the Vietnam War in that context. Speculate on how the world would be different to
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