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It is estimated that the annual heat-loss cost in a small power plant is $5,200. Two mutually exclusive proposals have been formulated that will reduce the loss. Proposal A will reduce heat loss by 60% and cost $3,000. Proposal B will reduce heat loss by 55% and cost $2,500. If the interest rate is 8% and the plant will benefit from the reduction in heat loss for ten years, using the present worth on incremental investment, which proposal should be accepted?
Would Natasha be willing to buy insurance to protect against the variable income associated with the new job? If so/how much would she be willing to pay for that insurance? (Hint: What is the risk premium?)
assume you are the plant manager for bravo pork rinds which produces pork products in a market that approximates
Explain the nature of the deadweight losses that occur from a tariff.
explain how the circular flow diagram relates to the current economic situation. using the circular flow diagram
Sometimes, a bidder on a work contract may bid lower than what would maximize his/her profit from the contract and the reason for that is to create goodwill.
cool-aire corporation manufactures a line of room air conditioners. its breakeven sales level is 33000 units. sales are
Interpret the estimated demand function for one-month memberships and calculate the point price elasticity of demand and point income elasticity of demand in Town D at the price charged last year.
What determines the vertical intercept of the Security Market Line (SML)? What determines its slope? And what will happen to an asset’s price if it initially plots onto a point above the SML?
a large electronics company is organized into mainly profit-center divisions. the components division and the consumer
Graph the demand for dollars and supply of dollars against the exchange rate. What is the value of the equilibrium exchange rate?
When it is observed that as the price of Mercedes-Benz cars rises, the quantity demanded also rises, what might one likely explanation be? What accounts for specialization?
An order written by the exporter instructing the importer, or their agent, to pay a specified amount of money at a specified time is a: Note Payable, Draft, Promissory Note, Check.
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