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Q1. The ABC Corporation is contemplating purchasing a new computer system that would yield a before-tax return of 30%. Also system depreciates at 10 percent a year. The after-tax interest rate is 8 % as corporation tax rate is 35 percent, and depreciation allowances follow the straight-line method over five years. For tax credit there is no investment. Would you expect ABC to buy the new computer system? Elucidate your answer.
Q2. The economy of Macro land is initially in long-run equilibrium. A severe drought causes an adverse provide shock. Graphically illustrate and elucidate?
Study by the National Park Service revealed that 50 percent of vacationers going to the Rocky Mountain region visited Yellowstone Park, 40 percent visit the Tetons, and 35 percent visit both.
Calculate the price elasticity of demand for Newton's Donuts
If you want to make four equal payments on each January 1 from 2013 through 2016 to accumulate the $1,000, how large must each payment be.
A Monetary History of the United States, 1867-1960 uncovered the empirical reality that money is pro-cyclical and leading, the classical economists went to the drawing board.
Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
Fully evaluate these regression results, including computation of t-statistics, adjusted R2, and the F-statistic.
The 2 firms form a cartel & arrange to split total industry profits equally. Under this cartel arrangement, they will maximize joint profits.
Show the balance sheets of Swede world only commercial bank after the initial deposits
what is the short run equilibrium level of output in this economy.
What is the equation for the AS curve. What restrictions on the parameters do we need to ensure that AS curve has a positive and nite slope.
If the nominal exchange rate were 1.2 Canadian dollars per U. S. dollar, illustrate what would be the real exchange rate.
Illustrate what output does the low point of ATC occur and illustrate what is the ATC at that output. Explain how your calculations.
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