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An old covered bridge can be strengthened at a cost of $9000, or can be replaced for $40,000. The present salvage value of the old bridge is $13,000. With reinforcements, it will last for an additional 20 years with $500 annual maintenance and have a salvage value at that time of $1000. The new bridge has a service life of 25 years and would bring $15000 salvage at that time and will reduce annual maintenance by $400 over the old bridge.
a) If the cost of money is 8%, should the bridge be replaced?
b) What is the break even cost of money between these two projects?
Suppose there are two individuals (person A and person B) who have the same preference for Kramer IMAX Theatre, i.e. their marginal benefits from watching movies are exactly the same and the more they watch the lower the satisfaction (benefit) they g..
use the following information to answer the questions below.nbsp assume that as per the normal assumptions of the
one of the most important skills to learn in managerial economics is the ability to identify a good business.1- discuss
Some observers say that changes in the past few years have eroded the monopoly power of local cable tv companies, even if no other cable firms have entered their markets. What are these changes? Do these monopoly firms still have monopoly powers
In a small economy, gross investment in 2009 is $1,500, consumption spending is $6,000, net investment is $200, government spending is $1,500, exports are $2,000 and imports are $1,000. What is GDP for this economy in 2009?
part-1nbspwhat is the official poverty line?nbspis the number of people higher or lower than it was last year? ten
If the bank maintains a reserve requirement of 2 percent, what is the maximum loan that the bank A can make b) what is the maximum amount by which the money supply can by increased as a result of bank A's new loan
Suppose you are the CEO of ClipIt, a paper clip producer. Your firm enjoys a patented technology that allows it to make paper clips faster and at a lower cost than your only rival, FastenIt.
what are the highest and lowest payment from the writer that beekeeper farmer team will accept for the sixth day?
a. A university requires buyers of season tickets for its basketball games to buy season tickets for its football games as well. b. Dairies that bid on contracts to supply milk to school districts collude to increase what they charge.
During 1993 when the economy was growing very slowly, President Clinton recommended a series of spending cuts and tax increases designed to reduce the deficit. These were passed by Congress in the Omnibus Budget Reconciliation Act of 1993.
Continue to assume that your firm will survive for only one production period.
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