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A small research device can be purchased for $10,000 and depreciated by MACRS depreciation. The net benefits from the device, before deducting depreciation, are $2000 at the end of the first year and increasing $1000 per year after that (second year equals $3000, third year equals $4000, etc.), until the device is hauled to the junkyard at the end of 7 years. During the 7-year period there will be an inflation rate f of 7%. This profitable corporation has a 40% combined federal and state income tax rate. If it requires a real 12% after-tax rate of return on its investment, should the device be purchased?
What are the fiscal policy instruments? What are the fiscal policy types? Do you agree with the following statement: “Even if the Congress does not pass anynew laws to stimulate the economy, the fiscal policy is still facilitating the economicrecover..
Conditions that exist when they shut down their operations and the conditions that exist when they resume their operations.
In the paragraph above, there is a discussion of how fiscal policy is affecting the unemployment rate.
The PC World article states that Intel needs to have their new class of fabrication plants (Fabs) produce at a specified volume. Show why this is the case using the concept of cost curves to describe firm behavior such as that found on page 206 of th..
Suppose the Irish economy is at full employment. Suppose in a few months, the exchange rate of the Irish national currency, the punt, will decline, giving the Irish relatively less purchasing power in foreign markets. What will happen to the price le..
In a small open economy with a FIXED EXCHANGE RATE, the central bank buys foreign currency in the foreign exchange market to prevent a depreciation of the nominal exchange rate.
Describes key elements of technology-enabled customer relationship management and outline advantages that technology-enabled customer relationship management has over traditional seller-customer interactions.
Fiscal policy is most effective in controlling inflation when the economy operates in the _____ region of the aggregate supply curve.
Synthesize the major strategies for increasing revenue and decreasing expenditures. Evaluate the skills in conducting environmental scanning for threats and opportunities facing higher education relative to financial issues.
Provide an interpretation for the budget constraint. Explain what the slope of the budget constraint is. Explain what sign cant about the point of tangency is between highest in difference curve and the budget constraint. At this point of tangency, w..
1. Explain the impact that a host or hostess has on a customer's impression of a restaurant.
Controlling Costs goes beyond cutting expenses. Good companies emphasize continuous reviews of processes and procedures to do things differently, better and more efficiently. One example of this is preventative maintenance -- regular maintenance prev..
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