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1. Under an agreement with the Internet Service Providers (ISPs) Association, ATT Communica- tions reduced the price it charges ISPs to resell its high-speed digital subscriber line (DSL) service from $458 to $360 per year per customer line. A particular ISP, which has 20,000 customers, plans to pass 90% of the savings along to its customers. What is the total future worth of these savings in year 5 at an interest rate of 10% per year?
2. Southwestern Moving and Storage wants to have enough money to purchase a new tractor-trailer in 5 years at a cost of $290,000. If the company sets aside $100,000 in year 2 and $75,000 in year 3, how much will the company have to set aside in year 4 in order to have the money it needs if the money set aside earns 9% per year?
At the moment of the purchase, the interest rate on gold coins was 5%- Was this purchase a good deal for Khazad-dûm Inc.?
How does a pure monopoly set its profit maximizing output and price - what are some characteristics of a pure monopoly?
Why does a business need to understand elasticity of demand and calculate the elasticity of demand between prices $6 to $8
Suppose a third project will cost $20,000 today and yield a return of $2,500 a year indefinitely. What is the present value of the project? What is the present value if the interest rate increases to 20 percent?
A financial advisor for an oil company
the lecture described how taxing income may change savings behavior. suppose instead that the government taxed
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A firm is considering 2 capital investment projects. Project A involves an initial cost of $125,000. The discounted present value of all future cash flows is $145,000. Project B requires an initial expenditure of $85,000. The discounted present value..
what processes do mncs need to establish in order to reduce prosecution risk? many mncs have decided to confront
Discuss two factors that would increase demand for labor - If the market price of the good or service that a firm produces increases, what happen to the demand of labor? Explain.
consider the case of a single polluter and regulator. the regulator knows the marginal benefit of pollution abatement
What are five comparisons and contrasts of a command and mixed economies?What are five comparisons and contrasts of a market and mixed economies?
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