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An equipment costing $52,500 is being considered for a production process at Dew Chemicals. The expected benefits per year is $5,000 and estimated salvage value is $9,000. Determine the rate of return the company can get in this equipment proposal. Equipment life = 15 years.
Patricia is researching venues for a restaurant business. She is evaluating three major attributes that she considers important in her choice: taste, location, and price. The value she places on each attribute, however, differs according to what type..
A firm purchased some equipment at a very favorable price of $30,000. The equipment resulted in an annual net saving of $1000 per year during the 8 years it was used. At the end of 8 years, the equipment was sold for $40,000. Assuming interest at 8%,..
illustrate the effect of an increase in P2 on the consumption of both x1 and x2. Label income and substitution effects for both goods.
Assume there is a 50% chance of the savings account losing half your money. Elucidate how much does the person save now?
Suppose 42% of the populations are engineers. If a random sample of size 508 is selected, what is the probability that the proportion of the sampled engineers will differ from the population proportion by greater than 6%? Round your answer to four de..
If the Fed simultaneously raises the discount rate and the reserve requirement, the money supply will:
A firm produces two goods: widgets (X) and woozles (Y). Its profit function is given by: Π = 55X – 2X2 – XY – 3Y2 + 100Y and its maximum output capacity is X + Y = 17. Use the Lagrangian method to calculate the output mix the firm should produce. Est..
How much money must be invested in an account that pays 6% per year interest to be worth $20000 at the end of 8 years of (forgetting the leap years and making "convenient" assumptions) : annually
Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment. Now use the diagram from part A) to show the new long-run equilibrium of the economy. (Assume there is no change in the long-run aggre..
Which policy do you believe would be more effective in the short term for accomplishing these goals.
q.a firm is using 30 units of labor and 20 units of capital to produce 4000 units of output. at this combination the
Illustrate what specific factors might have accounted for this event.
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