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Charles is deeply in debt, with over $60,000 owed on credit cards at an annual rate of 20%, and $80,000 owed on student loans at an annual interest rate of 5%. To maintain appearances, he must arrive at work in style. His only options are: 1) To continue to drive his fancy Mercedes Benz to work, or 2) To sell his MB and hire the lightning limousine service to chauffeur him to work. (Assume Charles gets the same value from either alternative, and never has any reason to use his car other than to go to work). Lightning Limousine charges $18,000 per year (with payment for the full year due at the end of the year). Charles' MB can be sold now for $50,000 whereas a year from now its resale price will only be $40,000 Should Charles sell his car and employ Lightning Limousine, or not? Why? What is the user cost of capital associates with owning the MB for the next year?
a. it is often suggested that the bank of canada try to reduce the inflation rate to zero. if we assume that
Determining who benefits can be tough for negative events, but it's especially important in order to prevent the unscrupulous from recapitalizing on them. Consider the following events and trends, and determine possible winners and losers from an ..
the wilson companys marketing manager has determined that the price elasticity of demand for its product equals -2.2.
Assume the market for natural gas can be explained by, Where P is the price of natural gas per million BTU, Q(D) is the quantity demanded and Q(S) is the quantity supplied of million BTUs of natural gas a day.
Are people helped more if production results in a loss than if it leads to profit? Is there a conflict between production for people and production for profit?
Jiffyland produces nothing but peanut butter
1.outline a plan that will assess the effectiveness of the market structure for the companys operations.2.suppose the
discuss the overall importance of motivation as it relates to management. provide a substantive 150 to 250 word initial
what is the difference between real and nominal gdp? does gdp accurately reflect the nations welfare? why or why not?
youve recently learned that the company where you work is being sold for 315000. the companys income statement
What is the difference between a price ceiling and a price floor? What will happen if a price ceiling is imposed below the market equilibrium? If a price ceiling for a good is set below the market equilibrium
in the globalizing economy of the late 20th and early 21st century liberalized trade has been sought by way of regional
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