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The initial cost of constructing a permanent dam (i.e., a dam that is expected to last forever, perpetuity) is $425 million. The annual net benefits will depend on the amount of rainfall: $18 million in a “dry” year, $29 million in a “wet” year, and $52 million in a “flood” year. Meteorological records indicate that over the last 100 years there have been 86 “dry” years, 12 “wet” years, and 2 “flood” years. Assume the annual benefits, measured in real dollars, begin to accrue at the end of the first year. Using the meteorological records as a basis for prediction, what are the net benefits of the dam if the real discount rate is 5 percent? Does the dam pass the net benefits test?
You take $1000 you had kept under your mattress and deposit it in your bank account. If this $1000 stays in the banking system as reserves and if banks hold reserves equal to 20 percent of deposits, by how much does the total amount of deposits in th..
Some businesses will examine their pricing structure and modify it in order to maximize revenue, either by raising or lowering price. Why organization chosen lower prices to increase revenue.
Elucidate the cost of producing an additional washing machine when 50 cars are being produced. when 150 cars are being produced.
Discuss this week’s objectives with your team. Your discussion should include the topics you feel comfortable with, any topics you struggled with, and how the weekly topics relate to application in your field.
q. the credit card market has grown increasingly competitive. to maintain customer satisfaction banks that issue credit
What indifference curves and budget constraints to explain how an individual labor supply is affected by qualifying for the TANF program?
q1. how do expectations of a near-term policy reversal weaken fiscal policy based on changes in tax rates?q2. why are
Assume that neither country experiences population growth nor technological progress as well as that 5 percent of capital depreciates each year
Interpret these results. Is profit per employee much sensitive to industry-specific or firm-specific factors for this sample of giant corporations.
bill operates a boat rental business in a competitive industry. he owns 10 boats and pays 1000 per month on the loan
To raise the incomes of the worlds severely poor population to the official threshold of US poverty.
How do restrictive job protection measures affect the demand for unskilled workers? Do they benefit or help the unskilled worker? Explain.
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