A city is planning to renovate their current facility with hi-tech computerized systems. Four plans are proposed by the engineers. Each plan will save $950,000 annually but their cost is different. The benefits will last for 30 years. Based on a benefit-cost analysis what should the agency do, if i = 10%? B C D E F $7,250,000 | S7,500,000 || S6,000,000 | $6,500,000 $140,000 $8,000,000 | $5,500,000 $150,000 $60,000 Initial Cost Annual O & M | $90,000 $110,000 $80,000
Q: Consider that a company has a total cost function TC = 3Q3+2Q2+6. a.What is the average and margina...
A: Part a: Average Cost = Total Cost/ Quantity Marginal Cost = dTC/dQ TC = 3Q3+2Q2+6 Average Cost = 3Q3...
Q: Investments require savings. Which of these is not a component of investments in a country's economy...
A: Investments are defined as the production of those goods and services that are used to produce other...
Q: The Balassa-Samuelson critique of purchasing-power parity focuses on (a) the inclusion in national p...
A: The Balassa- Samuelson critique of purchasing power parity focuses on the difference in productiviti...
Q: The equation for purchasing power parity is – the domestic price should equal the exchange rate mult...
A: Given, 1 Euro = 1.145 dollars If purchasing power parity holds, Domestic price=exchange rate×foreign...
Q: Kyle's utility function is U = 2.7X +2.7Y, where X is units of good X and Y is units of good Y. What...
A: Marginal utility of good X can be calculated by differentiating utility function partially wrt X. MU...
Q: The sales of a company rose from dollar 40,000 in March to dollar 48,000 in April 2002. company expr...
A:
Q: 4. Effects of a tariff on international trade The fallowing graph shows the domestic supply of and d...
A: A country will import the goods if, at the world price, the domestic demand is greater than the dome...
Q: Supply: -35 + 35P Demand: 205 -25P Where P is the price of good = {1,2,3,4,5,6,7,8} a. Plot and dete...
A:
Q: Q2. Suppose a management accountant of a manufacturing company give you the following information: -...
A: Answer: Given, Price (P) (in OMR) Quantity (Q) (units per month) 1000 (P1) 175 (Q1) 1800 (P2)...
Q: Erwin expects to receive 20,000 dollars in 10 years. If interest is computed at 6% compounded contin...
A: Given: Amount (A)=$20000 Interest rate (r)=6% compounded continuously Number of years (t)=10
Q: a farmer in Georgia begins to grow peaches. He uses $1.000.000 in savings to purchase land. he rents...
A: Both Economic profit and Accounting ptofit solved below,
Q: What is the meaning of capital formation in economics, write the detailed note about capital formati...
A:
Q: Question on Harrod-Domar Growth Model. Show (complete mathematical solution) how the net savings r...
A: Economic growth: When there is an increment in the generation of output is taking place then it will...
Q: apital equipment per worker ($ thousands) g statements are correct? e function is the marginal produ...
A: *Answer: Correct options are a) and b) °The marginal product of capital is the additional output th...
Q: Find FV: You have $2,000 in a savings account that earns 1.5% interest per year. What will be the ba...
A: Future value is the value of an asset present at a future date based on an expected growth rate (FV)...
Q: L0.3 10.4) The following data are available for a project: Present worth of benefits $17 000 000 Pre...
A: A benefit–cost ratio is an indicator, used in cost–benefit analysis, that attempts to summarize the ...
Q: Assume that the most efficient production technology available for making vitamin pills has the cost...
A: "Average total cost (ATC) is the cost per unit of the output produced and this is computed by dividi...
Q: 2. Given: Q 100K".“L08; w = 50; r = 80; Qo = 2,000 w a. Solve for the MRTSK and the market rate of e...
A: Answer is given below...
Q: Which best describes why the multiplier exists? When people spend money, that money ends up in the p...
A: Multiplier is an economic term which shows that an input widens the effect of other variables.
Q: If there is a $120,000 investment on a project and the profits generates $180,0000, what is the retu...
A: G Given,Investment=$120,000Profit=$180,000Now we know that,ROI=Net profitCost of investmentx100There...
Q: The marginal cost of providing a taxi trip is $5.00. Each taxi has the ability to make 20 trips per ...
A:
Q: Q1. a List down different type of interests and their related formulae. b. Collect one example for e...
A: Q1. a. Type of interests Simple interest: P x R x T100Compound interest: A=P(1 + rn)n Accrued Intere...
Q: Which of the following statements are correct? Select one: O a. Households smooth their consumption ...
A: In macroeconomics, the household sector consumes the final items created by the production sector. I...
Q: If the multiplier is 5 , what is the marginal propensity to save (MPS)? 5 0.20 0.80 0.50
A: The value of multiplier is given to be as = 5 We have to calculate the value of marginal propensity...
Q: Hello help please There are six hundred Economics students in the post-graduate classes of a univers...
A: The correct answer is given in the second step .
Q: Briefly explain the concept of universal health coverage and the strategies employed in Caribbean co...
A: The basic provision of health care to all individuals and communities regardless of their financial ...
Q: At a price of $4.97 per pound, the supply for cherries is 16,289 pounds, and the demand is 10,218 po...
A: Demand and supply In an economy there is always a demand for goods and services and the supply of g...
Q: he following equations, Pomarker "-2Pamarken + 120 MCoPac = 0.5Qsorec + 5 MCsnale " Osanaie + 40 Fin...
A:
Q: 5. We have 5 groups of consumers on potato market. According to the table calculate total market dem...
A:
Q: Holly will choose a combination of soda and water to buy. She has $12 to spend. Soda cost $3 and wat...
A:
Q: QUESTION 8 Suppose that the production function y-f(x_1,x_2) (where: y is output level, x 1 is a var...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: nduras allows interrational trade in the market for soybeans, it will import tons of soybeans. suppo...
A: Equilibrium is achieved at the output level where Qs equals Qd
Q: What effect did creating a single market and single currency within the European Union have on the c...
A: European Union Single market: The single market was formed within the European Union so that while t...
Q: The target investors of the new issuance of the 800,000 P1,000-par value shares expect a return of 1...
A: Return rate = 14% Par value = 1000p Return per share = 160
Q: Distinguish between the two global cultures of capitalism. Do you envision a convergence of these tw...
A: Capitalism is the type of economy where the full control of the market is in the hands of the privat...
Q: Assume that the one-year U.S. Treasury bond rate is 3% and the similar European government bond rate...
A: Formula:- Forward rate = spot*(1+ u.s inflation rate)/(1+ europe inflation rate)
Q: Consider your textbook’s derivation of a DD curve from a simple short-run Keynesian model of the pro...
A: The DD curve in the simple Keynesian model represents the total demand curve for goods and services ...
Q: Suppose real GDP is $3,500, what of these is occuring?
A: Given, AEplanned is demand. Now, When supply is more than demand, there would be excess supply. When...
Q: The production function q = 9K0.8L0.1 exhibits: a. increasing retruns to scale b. constant return...
A: The relationship between ou>tput and proportional increase in all the inputs is referred to as Re...
Q: ts Keep the Highest /3 nsumer Surplus e buys an iPhone for $150 and gets a consumer surplus of $200....
A: Equilibrium is achieved at the output level where Qs equals Qd
Q: Instructions: Enter your responses as a whole number. a. What price will prevail in this market? b. ...
A:
Q: Suppose life expectancy in years (L) is a function of two inputs, health expenditures (H) and nutrit...
A: The marginal product of a business is the additional output created as a result of additional input ...
Q: If the sample coefficient of determination (R2) is 0.75, this means that a. 75 percent of the variat...
A: Coefficient of determination (R2) is a statistical measure which tells us the goodness of fit of th...
Q: Could someone answer this for me please You estimate a simple linear regression model using a sample...
A: Answer: As it is mentioned : Y= 97.25 +19.74*X(3.86) (3.42 interval estimate =99%
Q: TC = 134 + 20Q + 4Q2 What is the average fixed cost when 11 units are produced? Enter as a value. R...
A: TC=134+20Q+40Q2AFC=134+20Q+40Q2QNow,AFC11=134+20(11)+40(11)211 =5,19411 =472.18
Q: Suppose that your salary will increase by 2% per year over the next 4 years. If annual interest rate...
A: As it is mentioned in the question salary increase by 2% for next 4 year annual interest rate =2%
Q: Using a bar chart, when prices are rising, what do falling volume and open interest indicate regardi...
A: When making economic analysis, bar graph is one of the graphical representation of a specfiic analys...
Q: Suppose a country exports $60 million worth of goods and services, while it imports $50 million wort...
A: The term GDP means the aggregate total output produced by a country in the current year. This produc...
Q: This policy holds that you should raise tariffs so that it becomes difficult for imported goods to c...
A: There are many strategies that can lead countries to import less. One strategy is substituting domes...
Q: QUESTION 3 A dealer decides to sell an antique automobile by means of an English auction with a rese...
A: 3) The expected revenue is as follows, given that they do not collude and are bid rationally, P(ER)...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Please no written by hand and no emage Solve in excel Carp, Inc. wants to evaluate two machines for packaging their products.Machine A:Initial cost is $700,001st year O&M cost is 18,000; this cost increases $900 each year.The annual benefits are $154,000It can be sold at the end of 10 years useful life for $145,000 Machine B:Initial cost is $1,600,001st year O&M cost is 28,000; this cost increases $650 each year.The annual benefits are $300,000It can be sold at the end of 20 years useful life for $210,000The companies uses an interest rate of 15% Use annual cash flow analysis to decide which is the most desirable alternative.(a) Q1: Examine the data in the Table below and determine the lifetimecosts of this hybrid vehicle. b) As logistics manager, you’re considering the following alternativevehicle for your fleet. What are its lifetime costs in comparison withthe hybrid vehicle? c) Calculate the indifference point between the two vehicle designsand the expected age of the vehicles at this point. d) Which car should you choose if you intend to own it for longer thanthis time?A firm is considering the “make vs. buy” question for a subcomponent. If the part is made in-house, the production data would be: first cost = $350, 000; annual costs for operation = $45, 000; salvage value = $15, 000; project life = 5 years; interest = 10%; and material cost per unit = $8.50. If annual production is 10,000 units, the maximum amount that the firm should be willing to pay to an outside vendor for the subcomponent is nearest? (a) $10 per unit (b) $16 per unit (c) $22 per unit (d) $28 per unit?
- 4. A government is planning to implement a new traffic control and surveillance system. The maintenance cost of the system is $1,200,000 per year. It is believed that the new system can help 3,000 driver saving 8 hours per year. The average wage of the people in this country is $150 per hour. It is expected that the system can be used for 5 years, i.e., the first benefit and cost are B1 and C1 respectively, while the last are B5 and C5. (a) What is the value of time saved by the new system per year? (b) Suppose the market interest rate is 5%. Calculate the net present value of this system. Should the system be launched? (c) Suggest two reasons to explain why the market interest rate in part (b) may be too high to evaluate the project. Should the system be launched if the interest rate is adjusted according to your suggestions?Determine which alternative is the most viable by incremental B / C (values in thousands),considering an interest rate of 3%A B C D E FInitial cost 500 550 300 550 500 600Total annual costs $ 360 480 180 600 300 660Annual income $ 550 620 325 900 550 800Against annual profits 300 300 400 300 300 200 ---Methods of economic evaluation of alternatives----Pls help with below homework. A particular apartment building has changed ownership three times in 10 years. and the price has increased each time a minimum of 23%. Price increases for similar apartment buildings have averaged 17% per sale in that time. Is a licensee in Illinois justified in guaranteeing a prospective buyer of this apartment building at least an 8% profit on the resale of the property? Select the correct option from below : A) Yes, because this apartment building has a proven profitability history. B) Yes, because the average price increase for similar apartment buildings is more than twice the target amount. C) No, because the licensee should never guarantee a future profit of any amount. D) No, because past sales figures cannot reliably predict future prices.
- Construct a cash flow timeline with n=10 years. Include a Year 0 cost of P0, at least two future costs in two different years (F1 and F2), a series of 5 annual costs (A) that start in a year that you select, and a single income in year 10 from salvage (S). Now you have a timeline and economic model but no dollar cost estimates. Using your cash flows above, build two different ‘factor’ equations that can be used to compute the overall Present Value (P) using the timeline cash flows from your timeline. Let the interest rate be a variable named i%. Use the cost variable’s name to represent the cash flow dollars and write each equation to produce an overall model for Present Value at time 0.A major equipment purchase is being considered by Metro Atlanta. The initial cost is determined to be $1,000,000. It is estimated that this new equipment will save $100,000 the first year and increase gradually by $50,000 every year for the next 6 years. MARR=10% a. Using Benefit- Cost analysis, what is the Benefit/Cost ratio for this equipment purchase? b. Based on the Benefit/Cost analysis should Metro Atlanta purchase the equipment?In Engineering Economics, which among these is/are true about a discount?A. It is the difference between the future and present worth values.B. Its discount rate will never be equal to the interest rate.C. It is a year-end payment paid at the beginning.D. It is the interest paid for every year-end payment.
- A series of alternative projects have the following series of discount annualized costs and benefits. Which project is your best choice? What is your second-best choice? Please list your calculation details. Project Alternative A B C D E Present Value of Benefits 100 160 90 70 180 Present Value of Costs 60 90 40 30 120Pls select correct option and explain it.1) When and why should a utility approach be applied?2) Explain how utility could be used in a decision where performance is not measuredby monetary value.3) What are the key traits and differences of Project and Review Technique(PERT)/Critical Path Method (CPM)?4) Why perform sensitivity analysis?5) Explain how and why all predecessor activities must be considered when finding theearliest start time