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The Company IIE Inc. is considering upgrading their distribution center (DC) and have received investment proposal from four different vendors. The budget limitation for the investment is $1 million. Alternative 1 and 3 represents the implementation of RFID (which is the main goal of the investment) and are mutually exclusive; however one of them must be included in the project if it is approved. Alternative 2 is contingent on alternative 3. The company uses a MARR of 15%
Using the ranking approach and PW, AW and FW as measures of performance, determine the preferred investment alternative
Using the incremental approach and the IRR as the measure of performance, determine the preferred investment alternative
Draw a indifference curve and degree of substition betweem goods: When the two goods are imperfect substitudes for each other, and assuming diminshing marginal rate of substitution.
Describe what type of foreign investments would be best for the economy's PPF. What are the opportunity costs of these decisions.
If monetary authority wants to stimulate an economy in a recession, it often reduces interest rates, and if inflation rate is low, as it has been in the early part of current decade,
There is a vast number of hog farmers in Canada. Industry should be a good approximation to perfectly competitive market. The demand for processed pork in Canada is;
What is a budget constraint? How does a budget constraint explain consumer choices when used in conjunction with indifference curves?
Southwest Physicians, a medical group practice, is just being formed. It will need 2 million dollar of total assets to generate $3 million in revenues.
Assume Helen's income increased from $30,000 per year to $45,000 per year and Helen\'s crab meat consumption went from 25 pounds per year to 30 pounds per year.
Suppose an economy in which customers expenditure is represented through the following equation, Determine the equilibrium level of income
Find out the price elasticity of demand regarding to the money price using "arc elasticity."
Suppose that in the market for comic book illustrators the substitution effect dominates the income effect While visiting Comic Con.
Compute the total cost of providing this insured service to the plan before and after the change in coverage.
Discuss what has occurred to change the demand for, or the supply of, the good or service, and market prices of those products or services.
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