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An asset with a first cost of $250,000 is expected to have a maximum useful life of 10 years and a market value that decreases $25,000 each year. The annual operating cost is expected to be constant at $25,000 per year for 5 years and to increase at a substantial 25% per year thereafter. The interest rate is a low 4% per year, because the company, Public Services Corp is majority- owned by a municipality and regarded as a semiprivate corporation that enjoys public project interest rates on its loans. Verify that the ESL is 5 years. Is the ESL sensitive to the changing market value and AOC estimates?
q1. will the unemployment impact be bigger or smaller when we have elastic supply as opposed to inelastic supply?
The real wage
Use axiom of transitivity to prove that indifference curves cannot touch each other. Use axiom of non-satiation to prove that indifference curves will always be downward sloping and utility functions will always be upward sloping. Use the axiom of di..
If this industry acts like a monopolist in the determination of price and output, compute the profit-maximizing level of price and output
Discuss the concept of the financial rate of return on a college education. If this return is less than the return on a bank account, does that mean you should quit college? Why might you want to stay in school anyway? Are there circumstances under w..
Many companies choose to incorporate in the tiny state of Delaware because __________.
What does the principle of horizontal equity state?
How does the AICPA Code of Professional Conduct relate to ethics? Provide examples to support your response.
Explain how a manager would avoid having espoused reality enter into his or her department. Include a discussion on the tools they could use, would department meetings help.
A man is planning to retire in 20 years. Money can be deposited at 6% interest compounded monthly, and it is also estimated that the future general inflation rate will be 4% compounded annually. What amount of end-of month deposit must be made each m..
Define “trade creation” in the context of the formation of a customs union. Then, using a demand/supply diagram of a (small) home country for a good that is produced at home and would be imported if there were no tariff, illustrate and explain how th..
A local department store offers 24-month financing for a certain $1,000 appliance at an “interest rate of 9% per year”. What is the effective annual interest rate a customer would actually pay for this financing? What is the nominal annual interest r..
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