User Account

All Pages

Expanded growth in a certain portion of the city

Assignment Help Microeconomics
Reference no: EM13294515

2) Due to expanded growth in a certain portion of the city, a new waste truck capacity is needed. An additional truck can be purchased now to replace the presently owned assets. The city uses a 5% interest rate for project evaluation. It is economically viable to buy the new waste truck?

New Model

Present value $72,000
Annual cost 12,500
Annual savings 31,000
Salvage value 7,200
Life in years 10

a.   PW = 191,097.03
b.    PW = -326,256.87
c.   PW = 70,851.45
d.   PW = $75,271.53

5) You just opened a savings account at a bank. You deposited $1,000 in the bank. The bank pays a simple interest at an annual rate of 6%. The second bank pays compound interest at an annual rate of 6%, compounded monthly. How much more money you will have in the compound interest savings account at the end of five years?

    a.    I = 1348.85
    b.    I = $48.85
    c.    I = 1,300
    d.    I = 867.60

6) A machine is under consideration for a new manufacturing process. The interest rate is 10% computed semiannually. Compute the future worth of this alterntive.

First cost = $70,000
Semiannual cost = $6,000
Semiannual income = $18,000
Salvage value = $9,000
Life in years = 5

    a.    $45,911.80
    b.    $36,911.80
    c.    -$255,958
    d.    $273,957.80

7) A gourmet ice-cream store has fixed cost expenses (rent, utilities, etc.) of $100,000/year. The ice cream cost $5 / liters to produce and sell for $7 per liter. The store sells around 150,000 liters of ice cream per year. If the gourmet ice cream store is going to operate for five (5) years, what is the payback period for an investment of $400,000 in the first year?

a. payback = 2 years
b. payback = 0.88 years
c. payback = 2.67 years
d. payback = 0.42 years

Reference no: EM13294515

Questions Cloud

Does the sequence converge in the mean square sense : Let Un be a sequence of iid zero-mean,unit-variance Gaussian random variables. A "low pass filter" takes the  sequence Un and produces the sequence Xn =1/2 ( Un +Un-1) a.) Does this sequence converge in the mean square sense
Write the complete iupac name : Designate True (T) or False (F) for each of the following statements and a sample of an optically active substance that consists of a single enantiomer is said to have an enantiomeric excess of 100%.
Define the atomic weight of mn if the atomic weights : What is the atomic weight of Mn if the atomic weights for Ag and Br are 107.868 and 79.904 respectively
What is the monthly payment that can be made from this fund : The fund will disburse monthly for 12 years, and the desired cash balance at the end of 12 years is $1,000,000. What is the monthly payment that can be made from this fund?
Expanded growth in a certain portion of the city : 2) Due to expanded growth in a certain portion of the city, a new waste truck capacity is needed. An additional truck can be purchased now to replace the presently owned assets. The city uses a 5% interest rate for project evaluation. It is eco..
Which would expect to have a bigger effect on cmos circuit : Which would you expect to have a bigger effect on the power consumption of a CMOS circuit, a 5% increase in power-supply voltage or a 5% increase in internal and load capacitance
Describe what is the pressure in the flask : When 0.577 L of Ar at 1.20 atm and 227°C is mixed with 0.296 L of O2 at 501 torr and 127°C in a 400. mL flask at 27°C, what is the pressure in the flask
What was the mass of the dog food : A 21 kg suitcase is being pulled with constant speed by a handle that is at an angle of 30 degrees above the horizontal. What was the mass of the dog food
Explain the actual chemical formula must remain top secret : the actual chemical formula must remain top secret. The company is interested in the drug's Ka value because only the dissociated form of the chemical is active in preventing cholesterol buildup in arteries.

Reviews

Write a Review

Microeconomics Questions & Answers

  Repricing the employees stock options to shareholders

The WSJ recently reported that Juniper Networks plans to offer its more than 1000 employees opportunity to reprice their stock options.

  Effect of the global financial crisis

Determine the impact of global financial crisis of 2008-2009 on the economies of industrialised nations and emerging markets. Discuss what effect do problems like these have on attitudes towards free trade?

  Calculate the average or incremental costs of a blood draw

The phlebotomy lab is designed to accommodate 20,000 draws per year then what are the average and incremental costs of a blood draw when the volume is 20,000? 10,000?

  Develop a partial budget for a change in cattle production

Calculate the break-even weight for weaners. Show your calculations here and Develop a partial budget for a change in weaner cattle production.

  What happens to social welfare

What happens to social welfare (the sum of consumer surplus and producer profit) as a result of the threat of entry in this market? What happens to equilibrium price? What might this imply about the role of potential competition in limiting market..

  Explain apparent inconsistency in samller multiplier

smaller multiplier means that the change in government purchases of goods and services or taxes necessary to close an inflationary or recessionary gap is larger. Explain this apparent inconsistency

  Who is willing to purchase additional units at any price

A monopolist has two types of customers. There are 100 Type A, who will each pay up to $10 for a single unit of the good, and 50 of Type B, who will each pay up to $8. Neither is willing to purchase additional units at any price. If it must charge..

  Determining optimal combination of labor-capital

Crew Brew produces a popular brand of beer in its mini-brewery located on a small river in Kentucky. Assume that capital can be purchased for $8 per unit, and labor costs $6 per unit. What is the optimal combination of inputs for the firm to employ..

  Law of diminishing marginal utility holds

Marginal rate of substitution increases as he or she consumes more of a good.C. the law of diminishing marginal utility holds.

  Find the comparative statics for an increase

Find the comparative statics for an increase in the sales tax, namely y^s/s and p^s/s , and provide an economic interpretation of them. What is the economic interpretation of an increase in the parameter a? You might want to plot the demand functi..

  What form of business ownership should you choose

Let us assume you and ten of your friends are going to open and invest in a business. You do not want to pay double taxation on the profits. You want a type of ownership where profits must be distributed based on how much each person has invested ..

  Find the quantity of toothpaste

Find the quantity of toothpaste that maximizes economic surplus. What is the relationship between this quantity and the market equilibrium quantity?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd