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The Financial Advisor is a weekly column in the local newspaper. Assume you must answer the following question.
"I need a new car that I will keep for 5 years. I have three options. I can (A) pay $19,999 now, (B) make monthly payments for a 6% 5-year loan with 0% down, or (C) make lease payments of $299.00 per month for the next 5 years. The lease option also requires an up-front payment of $1000. What should I do?"
Assume that the number of miles driven matches the assumptions for the lease, and the vehicle's value after 5 years is $6500. Remember that lease payments are made at the beginning of the month, and the salvage value is received only if you own the vehicle.
(a) Develop a choice table for nominal interest rates from 0% to 50%. (You do not know what the reader's interest rate is.)
(b) If i = 9%, use an incremental rate of return analysis to recommend which option should be chosen.
Opponents of the minimum wage point out that the minimum wage:
Assume that private schools want to maximize profits and that the market for private schools is perfectly competitive.
Agoira moves from a command system to a market system. Number of markets with shortages _____ (Increases, Decreases, No Change)
Assuming that price of labor (L) and capital (K) are 12 and 3, respectively. One manufacturing company is facing production function given as Q=LK. derive your total cost function. Based on your total cost function, derive the average total cost.
q1. explain the role culture may play in influencing entrepreneurship both at the individual and social level. define
The other product is K9Grass for consumers who have pet dogs. The addition of these two new synthetic grass products is a way for Forever Lawn to increase its:
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When the addition of one more unit of input results in a smaller increase in output then the previous unit, what type of return is occurring?
Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed? (HINT: Distribution has nothing to do with how old a movie patron is.) What are the different price points? Using this ..
Explain if the increase in demand results from a large purchase b the Chinese of a new American-made airplane or a large purchase by Americans of new lower priced Chinese-made high definition Televisions.
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For the production of the type Q = 2K + L with wage rate w = $1 and price of capital (rental rate) v = 1, the expansion path is K axis. Do you agree? If any firm experiences increasing returns to scale in a perfectly competitive industry then the ind..
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