1. A passenger train was bought at Php 36000000 and will incur 1500000 of annual operation and maintenance expense in the first 5 and will increase to 2500000 thereafter until it reaches its economic life of 20 years. Find the capitalized cost at i = 5 % yearly if the train will have a salvage value of Php 3000000 and would be replaced by a new one at the end of its economic life with the same maintenance and operating expenses.
Q: A perfume company manufactures a single product having a cost of OMR 1.50 per unit. Fixed cost is OM...
A: The break-even point is the point at which total cost and total revenue are equal, meaning there is ...
Q: Burger demand curve is represented by the following equation:T=10-Q . a.If at the current market pr...
A: T=10-Q Here since it is the demand curve T equals the price. ep = dQdP x PQ but here P equals T so ...
Q: £/unit 100 90 SRMC 80 70 60 50 40 30 SRAC 20 10 MR D= AR 10 30 40 50 60 70 80 90 100 Units Figure 11...
A: The given graph shows the cost and revenue curves of a firm at different output level.
Q: The population of Tunisia was 11.53 million in 2017. The inflation rate in that year was 5.32% in th...
A: Inflation is the rate at which the value of a currency is falling and, consequently, the general lev...
Q: Consider the following Cobb-Douglas production function. Q = 25K0.4L0.3 a. Find the first, second, a...
A: The Cobb-Douglas production functions show the technical relationship between two or more inputs and...
Q: a) The table below shows the probability distribution of the discrete random variable X. 2 3 4 6. 7 ...
A: (i) As we know that, the sum of all the probabilities in a probability distribution is always 1 so, ...
Q: The following table shows how three voters ranked Policy A, Policy B, and Policy C. Which policy is ...
A: Majority Decision is the one where more than 50% of the votes are in favor of one policy.
Q: Price £/unit D3 D1 D2 Quantity Figure 4 Supply and demand curves for a normal good Figure 4 shows a ...
A: The given graph shows shift in demand and supply curves according to different situations with the i...
Q: Consider an economy which is heavily dependent on tourism. To boost tourist revenue, the governmen...
A: The markets are the place where the buyers and the sellers of the products interact with each other....
Q: The Levee Spa is a profit-maximing company wanting to hire workers up to the point where the market ...
A: The situation which depicts many sellers selling products that are heterogeneous in nature to consum...
Q: What is the main advantage for an LLC or Corporation? Select one: O a. taxes O b. to avoid personal ...
A: In the mentioned question, we have been asked about the advantage of having a corporation rather tha...
Q: currency Y depreciate against USD by _________% Let’s say currency Y used to be at 1=$1 USD on fixed...
A: Depreciation is the decrease in the value of the currency in terms of other currency.
Q: Which of the following is NOT an example of a unilateral transfer? A) A Canadian charity sends don...
A: Unilateral transfer:- It is a transaction of money or goods from one person to another person withou...
Q: Price $11 10 8. * Doewm Tax 90 100 Quantity 24. How much will the seller receive after the tax is im...
A: Tax is compulsory payment made by individuals or organisation without expecting something in consid...
Q: True or False: To return the economy to the natural rate of output, the Fed could sell government bo...
A: True or False: In the given scenario, the economy is in recession with lower level of unemployment a...
Q: Consider the following version of the short run monetary model: MD/P = exp(-0.50*i)*Y (UK) MS M i i_...
A: Given information Money demand in UK Md/P=e(-0.5*i)*Y Ms=M I=i_US+e^e-e M=1100 Y=1506 P=1 i_US=0.04 ...
Q: All of the following statements are true about median voter theory, except: Select the correct answe...
A: In order to win an election, candidates must garner half the votes. In election politics, the "media...
Q: Most proponents of corporate environmental policy argue that the benefits of self-regulation far out...
A: There are many activities that are anthropogenic in nature causing many damages to the environment, ...
Q: Considering the following statements, which one is true that represents a financial outflow from the...
A: A) Returns paid on U.S. investments in France When the return is paid on U.S investment in France th...
Q: Greg has the following utility function: u = x x51. He has an income of $75.00, and he faces these p...
A: Given Greg utility function u=x10.49x20.51 .... (1) The equation of B=budget constraint...
Q: In each state, which points are stable steady states?
A: Answer -
Q: Q1(a) When a company buys medical insurance for all its workers, the insurance premium per workers i...
A: If the assumption that utility are relaxed still no insurance contract can provide full protection a...
Q: The Second Welfare Theorem implies that it is possible to achieve another Pareto optimal outcome wit...
A: In order to maximize welfare, there is a need to maintain efficiency as well as equity within an eco...
Q: MACROENVIRONMENT ELEMENT Characteristics (Define the given element by identifying its nature, charac...
A: Free market: Free market refers to the market system without government intervention. In this, the e...
Q: What has Colombia done to deal with drug trafficking? Detailed please
A: Drug trafficking: Drug dealing is a worldwide illegal exchange including the development, production...
Q: Which of the following is not an argument against government intervention in a market? A. If the go...
A: Government intervention means influence the demand and supply forces . And fix the the price and Out...
Q: the equilibrium exchange rate bêtween and Japanese yen is currently the exchange rate is $0.009 = 1 ...
A: The equilibrium exchange rate is the long-term exchange rate that equals the purchasing power parity...
Q: Explain why an increase in the price of an input must typically cause an increase in the long-run to...
A: As we know in long run , firms can increase both factors simultaneously and due to this firm exhibit...
Q: Cost £ AC Q Quantity per week Figure 3 Short run average cost curve for a firm Figure 3 shows the sh...
A: Average cost refers to the total cost per unit of output. It looks like a U-shaped curve.
Q: In the United States, childless women with the same education and experience as their male counterpa...
A: Gender pay gap refers to the gap in the wage rate of men and women in an economy. This refers to inc...
Q: The following graph input tool shows the dally demand for hotel rooms at the Peacock Hotel and Casin...
A: Hi! thanks for the questions but as per the guidelines, we can answer up to 3 subparts at one time. ...
Q: Find the marginal revenue function for the total revenue function given by 1 TR(Q) = 500Q- Find the ...
A: a)TR(Q)=500Q-13Q3Now,MR=∂TR∂QMR=∂(500Q-13Q3)∂QMR=500-33Q3-1MR=500-Q2
Q: Which of the following is not an example of a free rider problem? Select the correct answer below: i...
A: Public goods are those goods which are non-rivalrous and non-excludable.
Q: Mary Magnolia wants to open a flower shop, the Petal Pusher, in a new mall. She has her choice of th...
A:
Q: 21.Consider the following game, which depicts US and Soviet confrontation during the Cuban Missile C...
A: In economics, the game theory is a tool for the strategic interaction of two rational decision-maker...
Q: Consider golfers who led the Professional Golfers' Association of America (PGA) in winnings at diffe...
A: We know that the consumer price index CPI is calculated as CPI=value of consumption basket in given...
Q: per worker (constant dollars) Productivity using 2010 technology $120,000 90,000 E B 60,000 Producti...
A: Property rights refers to the rights to use, control and gain the benefits from a good or a service....
Q: 3. Garibaldi Provincial Park is located between Squamish and Whistler. A travel cost survey was comp...
A: Consumer surplus = 0.5 * (Maximum willingness to pay - Actual price paid) * Quantity
Q: What are your measures to sustain economic development?
A: In an economy, sustainable economic development refers to maintaining the economic growth and econom...
Q: A firm's marginal cost can always be thought of as the change in total cost if O the firm moves to t...
A: The marginal cost definition is the cost of producing a service or product unit that is not intended...
Q: 41. An equipment costs P100,000.00 and the salvage value is 15% of the original cost after 25 years....
A: We will answer the first question since the exact one was not specified. Please submit a new questio...
Q: Which of the following is not a true statement about employment and education in the United States b...
A: The measure which depicts the individuals working for an employer in order to get a fixed or variabl...
Q: For each of the following production functions, compute the marginal product of capital (MPK) and th...
A: Answer: Marginal product: marginal product of input refers to the additional output produced by that...
Q: Actual authority is the authoritya partner appears to have to third parties external to the partners...
A: In a market, when firms adopt different types of businesses, partnership is throne in which two or m...
Q: Price $11 10 90 100 Quantity 22. How much of the tax will the sellers pay? а. $3 b. $2 C. $1 d. $0 2...
A: The markets are the place where the buyers and the sellers of the goods, services, and other product...
Q: a) Clearly indicate the eliminated dominated strategies. Apply the EIE algorithm, and determine the ...
A: The given matrix is: w x y z a (1,5) (2,2) (0,4) (3,1) b (3,0) (4,1) (2,5) (4,2) c (1,3) ...
Q: 5. In the banana market: The FDA announces research results which suggest that cating 5 lbs of banan...
A: The economies around the globe tend to have a limit to the amount of resources which it have. The en...
Q: What is the value of the Lerner index for a company that has demand function Q = 220 - 4P and cost f...
A: Learner's index is used to measure monopoly power. It shows how greater is price from its marginal c...
Q: a) Assume we are now in mid- or late February 2022. After conducting your own analysis, you have mad...
A: Answer-
Q: Assuming that a country has a trade deficit of $50 billion, which of the following is true: A) The...
A: A country's Balance of Trade (BOT) is given by its Exports minus Imports (X-M). Where, X is Exports ...
Step by step
Solved in 2 steps
- A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years. The firm uses the straight-line depreciation method with a zero salvage value and has a (marginal) income tax rate of 40 percent. The firms cost of capital is 12 percent. Compute the IRR and the NPV. Should the firm accept or reject the project?2.5. An electric cooperative is considering the use of a concrete electric pole in the expansion of its power distribution lines. A concrete pole costs P18,000 each end will last 20 years. The company is presently using creosoted wooden poles which cost P12,000 per pole and will last 10 years. If money is worth 12 per cent, which pole should be used. Assume annual taxes amount to 1 per cent of first cost and zero salvage value in both casesCori's Meats is looking at a new sausage system with an installed cost of $495,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $73,000. The sausage system will save the firm $175,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $32,000. If the tax rate is 23 percent and the discount rate is 10 percent, what is the NPV of this project?
- A man is considering putting up his own enterprise, where an investment of 800,000 will be required and will take 15 years to recoup. He estimates his annual sales at 800,000 along with the following operating costs. Materials =160,000/ yearLabor = 280,000/ yearOverhead = (40,000 + 10% of sales)/ yearSelling Expense = 60,000/ yearThe man will give up his regular job paying 216,000 Php per year and devote all his time to the operation of his business, this will result in decreasing his labor cost by 40,000 per year, material cost by 28,000 per year and overhead cost by 32,000 per year. If the man expects to earn at least 20% of his capital, should he invest? Solve using a) Rate of return method b) annual worth method c)present worth method d)equivalent uniform annual cost methodA man is considering putting up his own enterprise, where an investment of 800,000Php will be required and will take 15 years to recoup . He estimates his annual sales at 800,000Php along with the following operating costs. Materials ............................. 160,000Php/ yearLabor ............................. 280,000Php/ yearOverhead ............................. (40,000 + 10% of sales) Php/ yearSelling Expense............................. 60,000Php/ yearThe man will give up his regular job paying 216,000 Php per year and devote all his time to the operation of his business, this will result in decreasing his labor cost by 40,000Php per year, material cost by 28,000Php per year and overhead cost by 32,000 Php per year. If the man expects to earn at least 20% of his capital, should he invest? solve in the present worth cost methodAn investment in a new piece of equipment costing P 50,000 is expected to yield the following over its 5-year useful life: Revenues (cash), P 40,000; operating costs (cash), P 18,000; depreciation, P 10,000. The present value of P 1 received annually for 5 years and discounted at the cost of capital is 4.10 assuming that all cash flows occur at year-end. Ignoring tax effect, what is the benefit/cost ratio (profitability index) for this piece of equipment?
- A California utility firm is considering building a 50-megawatt geothermalplant that generates electricity from naturally occurring underground heal. The binary geothermal system will cost $85 million to build and $6 million (including any income-tax effect) to operate per year. (Unlike a conventional fossilfuel plant, this system will require virtually no fuel costs.) The geothermal plant is to last 25 years. At the end of that time, the expected salvage value will be about the same as the cost to remove the plant. The plant will be in operation for 70% (the plant-utilization factor) of the year (or 70% of 8,760 hours per year). If the firm's MARR is 14% per year, determine the cost of generating electricity per kilowatt-hour.At 6%, find the capitalized cost of a bridge whose cost is P250M and life is 20 years, if the bridge must be partially rebuilt at a cost of P100M at the end of each 20 years a.) 265.3 b.) 295.3 c.) 245.3 d.) 254.3#23 * Using NPW to Decide Between Competing Projects: Machine X has an initial cost of $12,000 and annual maintenance of $700 per year. It has a useful life of four years and no salvage value at the end of that time. Machine Y costs $22,000 initially and has no maintenance costs during the first year. Maintenance is $200 at the end of the second year and increases by $200 per year thereafter. Machine Y has a useful life of eight years and an anticipated salvage value of $5,000 at the end of its useful life. If the MARR is 6%, what is the approximate Net Present Worth (NPW) of machine X? A. -$28,563 B. -$25,852 C. -$32,085 D. -$22,318
- Need answers,ASAP 4. a sediment control project in nueva vizcaya requires an initial investment of 145,000, has a salvage value of 22,000 after six years, incurs annual expenses of 10,000, and provides annual revenue of 18,000. using a marr of 10%, determine the aw of this project.Mustang Auto Parts, Inc. is considering one oftwo forklift trucks for its assembly plant.• Truck A costs $15,000 and requires $3,000 annually in operating expenses. It will have a $5,000salvage value at the end of its three-year servicelife.• Truck B costs $20,000, but requires only $2,000annually in operating expenses; its service life isfour years, at which time its expected salvage valuewill be $8,000.The firm’s MARR is 12%. Assuming that the trucksare needed for 12 years and that no significantchanges are expected in the future price and functional capacity of each truck, select the most economical truck on the basis of AE analysis.n Project A Project B 0 -$7,000 -$5,000 1 -$2,500 -$2,000 2 -$2,000 -$2,000 3 -$1,500 -$2,000 4 -$1,500 -$2,000 5 -$1,500 -$2,000 6 -$1,500 -$2,000 7 - -$2,000 8 - - Suppose projects A and B are mutually exclusive. The required service period is 8 years and comparable equipment will be leased for $3,000 per year payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15%? Use PW(15%) criterion and show your equation with numbers plugged into factors and your numerical result for each option.