14-EC-1 - Version anglaise - Novembre 2019

Painting or plastering a home would be considered capital improvements which would add to the basis in the home. Group of answer choices True False   28. Beginning with the 2018 tax year only self-employed people can deduct eligible home office expenses against their self-employment income. Group of answer choices True False

Juancho wishes to invest Php 100,000 over the next year in three types of investment. Investments A, B and C yields 6%, 4& and 7% percent, respectively. Market research recommends an allocation of at least 20% in and A and at most 50% in B. Moreover, the investment in A should be at least half the investment in C. What should Juancho do with his money? Formulate the linear programming problem. Present the linear objective equation or function and the constraint equations/inequalities

Luke is an engineering consultant who lives North Carolina and works around the world. In 2019 Luke traveled to Costa Rica for 2 weeks and provided consulting services to a Costa Rican developer. All of the work took place in Costa Rica. He was paid $14,000 USD by the developer.   Luke claimed this income on his 2019 U.S. tax return. Which of the following is correct regarding how the final value of this service will appear in national income accounts? <choose all that are correct> Group of answer choices $14,000 will appear in US GDP. $14,000 will appear in US GNP. $14,000 will appear in Costa Rica's GDP. $14,000 will appear in Costa Rica's GNP.

1. Which projects would you recommend Handstar pursue based on the NPV approach?  Based on the case above

Question 2: Evaluation of Public Expenditure The government has to choose between two different projects:1. Project 1 is organized in six years; the flows happen at the end of each period. It costs 100000, incurring immediately, and yields a return of 50000 for the first three years; in the fourth year, it yields a return of 50000, but the government has to sustain a cost of 20000 in order to make some necessary innovations to the structure of the plan; in the fifth year, it is able to generate a positive return of 60000, while in the last year the revenue is of 50000, but there is a cost of 10000 to close the project. The government assumes that, for the first four years, the discount rate should be 10%, while it is more appropriate to consider a discount rate of 15% in the last two years.  2. Project 2 is organized in four years; the flows happen at the beginning of each period. It costs 50000, incurring immediately, and yields a return of 35000 for the first three years; in the…

Suppose a small business owner is considering expanding their operations and requires additional capital to fund the expansion. The business currently has an annual revenue of $500,000 and incurs operating expenses of $350,000 per year. The owner estimates that the expansion project will generate an additional annual revenue of $200,000 and will require an annual operating expense of $120,000. The interest rate for a business loan is 6% per annum. Calculate the following: The net benefit (net revenue) from the expansion project. The maximum amount of loan the business owner should consider taking to finance the expansion, assuming they want to maximize their net benefit. Note: You can assume that all revenues and expenses occur at the end of the year, and the loan repayment will be done in equal annual installments over a specific period.

Define IRR method of capital budgeting. What are some of the problems associated with using IRR approach for mutually exclusive projects? Briefly explain with examples. How do managers deal with those problems?

Economics 7.11 Consider the projects given in Table P7.11. (a) Classify each project as either simple or nonsimple. (b) Identify all positive i*s for each project.

In order to increase the creativity of its staff, Google invested in a highly uniqueheadquarters building, brimming with indoor leisure activities and places for staff tosocialize. What type of asset-specific investment is this?a. Site-specific investment.b. All other options are correct.c. Physical asset investment.d. Human asset investment.

Definition of economic costs Edison lives in Detroit and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Edison does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this guitar business.

38. Assuming a $7 per unit tax is imposed for the sole purpose of funding a specific government program to provide free economics education to all citizens, the true total cost of this program will be $______.     a) 10     b) 12     c) 14     d) 16     e) 19     f) 28     g) 36     h) 48     i) 66     j) 70     k) 84

Calculate the net present value (NPV) before tax of investment A: a factory. Base your calculation on the following information: The investment cost is paid in full in quarter 0, and the cost of the factory is 100000. The factory has a lifetime of 20 quarters (5 years) and the value of the factory at the end of quarter 20 is 0 Only Basic jetpacks should be manufactured at the factory throughout its lifetime. There is no investment in research to streamline production or material consumption. Suppose the quarterly demand in the market is constant and given at P = 228 - 0.007 * Q, where P is price and Q is the number of jetpacks in demand. There are 5 competitors in the market (including you), and all sell the same number of jetpacks each quarter at the price of 193 each. You produce as much as you sell. The costs associated with the quarterly production at the factory are given at K = 158 * Q + 20000, where 158 * Q is direct labor cost and materials, and 20000 is quarterly maintenance…

A university is trying to determine how much it should charge for tickets to basketball games to help offset the expenses of the new arena. The cost to build the arena including labor, materials. e tc. was $92 million. Each year the maintenance cost is expected to increase by 5% as the building gets older. 1l1e maintenance cost for the first year is $150.000. Utilities arc expected to average about $200.000 per year and labor costs $300,000. The average attendance at basketball games over the year is expected to be J00.000 people (or 100.000 tickets sold to events). Assuming the arena has no other source of income besides regular ticket sales (not including student tickets) for basketball games, what should the university charge so that it can recover at least a 6% cost of borrowing on its investment? ll1c university expects the arena to be used for 40 years and 10 have no appreciable salvage value.

Public-private partnership ("PPPs") can be an effective way to build and implement new infrastructure or to renovaate, operate, maintain or manage existing transport infrastructure facilities. In both areas PPPs can be a mutually beneficial way to solve critical transportation problems. 1. Evaluate the effectiveness of Public Private Partnership in Namibia with reference to any PPP project/programme of your choice (preferably in the transport sector).

If the incremental federal income tax rate is 34% and the incremental state income tax rate is 6%, what is the effective combined income tax rate (t)? If state income taxes are 12% of taxable income, what now is the value of t?

firm decides to invest X units of capital in Project A and Yunits of labour in Project B.   iv.   The expected return for each unit of investment is $500 in Project A and $1500 in Project B. However in order to meet the expectations of the firm's ethical and environmental policy values of X and Y must satisfy the constraint x+y-5x-6y= 210. How many units of each type should firm buy in other to maximize total volume? What is the implication of a unit change in investment in capital and (or) Labour Economic Analysis?

Suppose the government is trying to determine how to deal with pesticide contamination of its water supply. It wants to undertake a benefit-cost analysis of two alternative policy options for controlling pesticides: Upgrade its municipal water treatment plant to remove the pesticides, or Banning the use of the offending pesticides in the metropolitan area. Assume that either techniques reduces pesticides to a level which does not adversely affect human health. The cost of these control options are as follows: Municipal treatment upgrades: Capital Costs = $9 million. The new plant is constructed over one year. It starts operating at the beginning of year two. Once the plant begins operation, it has operating costs of $1 million per year. Once constructed, the plant lasts for 5 years, then it must be replaced with a new plant. Pesticide Ban: Annual operating costs due to substitution of non-toxic methods of controlling “pests” = $4 million per year. These costs would last forever. The…

Suppose the government is trying to determine how to deal with pesticide contamination of its water supply. It wants to undertake a benefit-cost analysis of two alternative policy options for controlling pesticides: Upgrade its municipal water treatment plant to remove the pesticides, or Banning the use of the offending pesticides in the metropolitan area. Assume that either techniques reduces pesticides to a level which does not adversely affect human health. The cost of these control options are as follows: Municipal treatment upgrades: Capital Costs = $9 million. The new plant is constructed over one year. It starts operating at the beginning of year two. Once the plant begins operation, it has operating costs of $1 million per year. Once constructed, the plant lasts for 5 years, then it must be replaced with a new plant. Pesticide Ban: Annual operating costs due to substitution of non-toxic methods of controlling “pests” = $4 million per year. These costs would last forever. The…

You and two friends find yourself craving a fresh pizza while preparing for the final exam on the engineering economy. You can't spend time picking up the pizza and you have to have it shipped. 'Pick-up-Sticks' offers 1-1/4-inch thick (including toppings), 20-inch square pizza with your option of two toppings for $15 plus 5 percent sales tax, and $1.50 delivery fee (no sales tax on delivery price). "Fred's" offers Sasquatch round, deep-dish, which is 20 inches in diameter. It is 1-3/4 inches thick, contains two toppings, and costs $17.25 plus sales tax of 5 percent and free delivery. (1) What is the problem in this situation? Please state that clearly and specifically. (2) Apply the seven principles of engineering economy systematically to the problem you set out in Part (1) (3) If your common unit of measurement is dollars (i.e., cost), what is the better value for having a pizza based on the criterion of reducing cost per unit volume? (4) What other criteria might be used to select…

Which of the below statements regarding alternative (renewable) energy sources such as solar, wind, nuclear, biomass, geothermal, and hydropower, is NOT CORRECT based on current available research and data?   Group of answer choices   The development of alternative energy sources has resulted in new employment opportunities.   Improvements in technology has significantly lowered the cost of producing alternative (renewable) energy.   Alternative (renewable) energy result in cleaner air, less pollution, and possibly even less global warming and climate change.   By the year 2030 alternative energy will have amost completely replaced fossil fuels (coal, oil and natural gas) as the energy source used for global production.

Y8 Analysis on the perceived occurrence of challenges delaying the delivery of water infrastructure assets in South AfricaIntroductionInfrastructure development is of paramount importance for a sustainable economy that is competitive and productive. However, inflexible government’s fiscal policies, high budget deficits and lack of debt reduction strategies experienced by the public sector directly affect infrastructure development (Ruiters and Matji, 2015). The public sector experiences challenges of provisioning for public infrastructure assets. There are many challenges delaying infrastructure development. The study explored infrastructure backlog and deficits as alarming challenges to adequately fund and deliver water infrastructure assets in South Africa. Kudumela (2015) outlines challenges of infrastructure development: insufficient skills capacity at the municipal level, lack of funding, political instability and corruption, while Senyakoe (2011) indicates that municipalities…

1-Label the following as either being a final or intermediate good.A_ Recycled steel purchased by a steel manufacturer.B_ An automobile purchased by a package delivery company.C_A computer purchased by a university for use in the classroom A car purchased by a family.

Prominent Sdn Bhd produces furniture at several factories. Its Seberang Prai factoryproduces office chairs. Management aims to increase production in the coming year to 800units per month. Therefore, management is exploring two production strategies for thecoming year. The first strategy is to continue operations with the existing machine, MachineA, and the second strategy is to rent a new machine, Machine B, to produce the office chairs.The monthly rental of Machine B is RM14,000. Machine B takes half an hour to produce oneoffice chair. However, it requires a more skilled labour force with an hourly rate of RM30 perhour.Comparatively, continuing to use Machine A means that costs will remain the same. MachineA is 5 years old and is operating below capacity. The hourly labour rate is RM20 and thematerials required for each unit is RM30. Each office chair is assembled within an hour. Eachunit of the finished office chair is sold for RM120.The fixed monthly running costs of thefactory is…

The DCFs is the net-present-worth (or net-present-value) (NPW or NPV) method.True or false?

Compare and contrast the difference between dynamic (intertemporal) efficiency and static efficiency with respect to non-renewable resources. a. What are the efficiency conditions for each? Explain your answer. b. What costs reflected in the inter-temporal analysis are not captured in the static analysis? Explain your answer. c. How does the discount rate factor into each analysis? d. What impact does the discount rate have on the allocation of non-renewable resources across time and long run price path of non-renewable resources? e. Discuss the ethical issues associated with economists use and choice of a discount rate when analyzing natural resource and environmental problems.

A bank has $5 million in capital that it can invest at a 5 percent annual interest rate. A group of 50 workers comes to the bank wishing to borrow the $5 million. Each worker in the group has an outside job available to him or her paying $50,000 per year. If the group of workers borrows the $5 million from the bank, however, they can set up a business (in place of working their outside jobs) that returns $3 million in addition to maintaining the original investment. a. If the bank has all of the bargaining power (that is, the bank can make a take-itor- leave-it offer), what annual interest rate will be associated with the repayment of the loan? What will be each worker’s income for the year? b. If the workers have all of the bargaining power (that is, the workers can make a take-it-or-leave-it offer), what annual interest rate will be associated with the repayment of the loan? What will be each worker’s income for the year?

Taxes unrelated to incomes net of any​ non-income-related subsidies​(nonincome expense​ item) ​$1,200 Gross Corporate Profits plus​ Proprietors' Income ​$2,140 Rental Income​ (including implicit​ rents) ​$175 Net Interest ​$650 Depreciation​ (nonincome expense​ item) ​$1,775 Wage and Salary Income ​$8,200   According to the above​ table, Gross Domestic Product is Part 2   A. ​$12,115   B. ​$14,140.   C. ​$13,965.   D. ​$13,315.

I was told that the NPV alpha and IRR alpha is correct. but I was also told that project alpha has a higher internal rate of return and higher and present value. Is there many mistakes, within the workout?

Use the NPV approach to select the best group of projects. Select ALL the projects to be combined to maximize the NPV. Project A Project B Project C Project D

Describe the three steps in a replacement captial budgeting project in great detail

Which of the following is not a characteristic of a capital expenditure, for the purposes of government budgeting? a. recurring nature b. large price tag c. long life d. intergenerational equity