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A small manufacturing company is evaluating trucks for delivering their products. Truck A has a first cost of $22,000, its operating cost will be $5500 per year, and its salvage after 3 years will be $7000. Truck B has a first cost of $27,000, an operating cost of $5200, and a resale value of $12,000 after 4 years. At an interest rate of 15% per year, which model should be chosen if an annual worth analysis is performed? Contributed by Hamed Kashani, Saeid Sadri, and Baabak Ashuri, Georgia Institute of Technology
the various types of vehicles that can be used by clients to reduce the various kinds if taxation.
Mary’s utility function is U (b, c) = b + 100c ?c2, where b is the number of tomatoes in her garden and c is the number of onions. She has 500 square feet in her garden to allocate between tomatoes and onions. How many tomatoes and onions should Mary..
A price-taking firm selling in a market with a price greater than the firm’s average total cost should:
Cookie Monster consumes Ores (good 2, price p2) and homemade chocolate chip cookies that he buys from his mom (good 1, price p1). His utility function is u(x1, x2)=ln(x1+x2)+x1. A backstory for these preferences might be that he cares about total cal..
Islandia is a completely isolated island that has a fixed stock of 100,000 tons of coal. Islandia will survive for two periods. Consumers in Islandia having a declining marginal benefit of coal consumption in each period. Assume the real interest rat..
Identify 3 advantages of counter-trade? Explain how counter purchasing works.
if the original amount of loan is for $24000 and interest is 1/2% per month on the unpaid balance, explain how much will Kris's payments be.
q1. explain why wage rates might rise at joes quik print shop. if joe replaces his aging copy machines with state of
Given the following data: Et = ¥125 = $1.00; Et+1 = ¥100 = $1.00; US interest rate = 20%. If the interest parity condition is expected to hold, interest rates in Japan should approximately equal (percentage)
Assume a monopoly faces a linear demand curve given by q = 45 - p, where q is quantity and p is consumer price. (This means that marginal revenue function is MR = 45 - 2q). Marginal cost, MC, of producing the output is $5. By how much does the con..
Provide an example of a positive production externality, either one you have read about or found through research, or one that is hypothetical. The example should clearly state what benefit arises out of the production, and how this benefit without t..
The recent immigration of labor into the United States from Mexico has led to increased calls for new restrictions on this movement of labor (including greater enforcement of existing restrictions). What would be the costs and benefits to the United ..
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