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A new server system for your company will cost $25,000. Using the MACRS, the computer system has a useful life of 5 years.
1. The allowable depreciation for the 2nd year is:
2. The book value at the end of the 3rd year is:
3. The estimated salvage value at the end of 5 years is:
Show that if oil is produced from two reservoirs, one with high marginal cost and one with low marginal cost, it is not possible for the Hotelling rule to be satisfied for each reservoir simultaneously. Give two reasons that oil might be produced ..
ppose that the reserve requirement is 10 percent and the balance sheet of the People's National Bank looks like the accompanying example. A. What are the required reserves of People's National Bank Does thebank have anyexcess reserves B. What is th..
According to the National Bureau of Economic Research, a poor family is the one whose income falls below one-half of the median family income. Using this definition of poverty, answer the following questions. a) How, if at all, would the proportio..
If the equation for a country's Phillips curve is p = 0.02 – 0.7(u – 0.055), where p is the rate of inflation and u is the unemployment rate, what is the short-run inflation rate when unemployment is 5.8 percent (0.058)? Discretionary Policy: (True o..
Suppose that full employment GNP (FE Y) is = 4000 A. Explicitly find the necessary change in G to get the economy to full employment GDP. B. Explicitly find the necessary change in Taxes to get the economy to full employment GDP.
About two-thirds of funding for substance abuse treatment comes from taxpayers. Are there external benefits of substance abuse treatment that warrant this level of public funding?
A company consists of two kinds of employees, tall and short. Each person can work in either of two jobs, honest work or stealing from the company. The wage to honest work for a short person is wS, while the wage for a tall person is wT.
What components of GDP (if any) would each of the following transactions affect. Explain. A family buys a new refrigerator, You buy a pizza, California repaves Highway 101, Your parents buy a bottle of French wine.
Sam and Olivia decide to go into business, selling discounted merchandise during their Website "e-Buy." They sign a partnership agreement that requires Sam to contribute $12,000 and Olivia to contribute $8,000 in capital to start the firm.
consider an economy that produces only two goods fresh apricots and dried apricots. in this economy the technology of
government licensing of professions is common in our economy. for example one needs a license in order to practice as a
What is the maximum it would be reasonable for the owner of a building to pay for a new sprinkler system if it would save $715 per year in insurance premiums? Assume it would have a life of 20 yrs and a salvage value equal to 10% of its first cost.
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