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A company is considering the purchase of one of the following two machines that can generate the same output rate. If interest rate is 10%, determine which machine should be purchased by the use of annual cash flow analysis approach with least common multiple of their lives as the analysis period. Explain why you picked your option.
As a savings plan for college, the Smithfield's deposited $15,000 in an account paying 6% compounded annually when their daughter Mary was born. How much will the account be worth when Mary is 18 years old?
The production process requires labor and capital as inputs. Labor costs $6 per labor hour and capital costs $12 per machine hour.
Currently AIDS is spreading in china and India. Govt. of these nations fail to stop spread of AIDS what are likely consequences for future economic growth in china and India.
This question is based on The Economist Magazine's Schools Brief: State and Market - which has its own module in Etudes
Omar will earn $20,000 this year and $50,000 next year. He can borrow and lend at an interest rate of 25%. He decides to borrow $15,000 this year. Draw Omar’s budget constraint for consumption spending this year and next, label the amounts at the end..
determine the macroeconomic effects of the following macroeconomic event when the economy is initially at less than
If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as institutions sell bonds to obtain more money. The federal government’s control of the money supply, which influences ..
If oligopolists compete hard against each other.
Suppose that a city mayor proposes to pay for the acquisition and construction of public parks by implementing a 7-year local sales tax. Someone argues that the financing mechanism should instead be something that is spread out over more time, noting..
Describe the economic status of South Korea. What types of economic activities are most prominent there? What factors have led to your region's growth or lack thereof?
Wanda Weeks has decided to stay in a lower-paying position with a local electric company rather than accept a much higher-paying job with a new information technology company. Use a risk model to explain her decision.
Compute the upper and lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.
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