A machine that was used for 8 years has a market value of $2500 now, which decreases by $100 each year for the next 5 years. Maintenance costs this year are $5k, and for the next 5 years they are estimated at $6k, $7k, $8k and $9k. Determine the marginal cost of extending the service for two years if the MARR is 12%. Fill the whites with the results. a) Fill the whites: The loss of value in the market in year 2 is $ . The loss in interest in the year 2 $ . The Marginal Cost in year 2 is $ b) If the minimum EUAC of the machine is $5500, when should the machine be replaced? Anus (0.1.2.34 or 5)
Q: Selling Price Workers Total Wage Rate Per Day Output $75 $20 1. 16 $75 $20 28 $75 $20 37 $75 $20 4…
A: The measure that depicts an extra amount of output that is being produced from utilizing one…
Q: A company is considering the purchase of new equipment for $93,000. The projected annual net cash…
A: Net Present value is a tool which is used for calculating the current total value of a future assets…
Q: 3. Explain the following questions about The Beckmann Model Outline Beckmanns model of spatial…
A: The spatial monopoly model developed by Beckmann When it comes to the structure of the market,…
Q: [Basic static analysis of trade] Construct a simple model of the (wholesale) market for wheat…
A: The process of purchasing and selling items in big numbers and so at lower rates, mainly to…
Q: Which of the following statement is true: A. Since the subsidy increases both consumer surplus and…
A: The incentive that is given by the government in form of financial support or aid for the promotion…
Q: How much would the excess burden of this $12 tax be if the equation of the original supply curve had…
A: Excess Burden:It is the loss of economic welfare for society. It occurs due to market distortion…
Q: Question 11 Refer to Figure 6-1 What price will Dough! charge to maximize profits? (Write just the…
A: "For a monopoly, profits are maximized at a point where marginal revenue curve (MR) intersects the…
Q: true or false: 21) The indivisible reserve of savings and credit cooperatives is NOT covered by…
A: An person or institution obtains financial protection or compensation against losses from an…
Q: 2. Given the following information: U=XY; Px= 5; Py= 10; I = 200, a. mathematically_show the (i)…
A: * SOLUTION :- (6e) Given that , U = XY Px = 5 Py =10 I =200
Q: Economics 1. Assume a nco-classical aggregate supply model with both long run and short run…
A: Supply and demand are the driving factors underlying the creation, price, and consumption of…
Q: Read the following scenario. Imagine a market where there is perfect competition between two or…
A: *Answer:
Q: Consider a market given by the following supply and demand equations MC=0+5Q WTP=98-4Q What is the…
A: Demand and supply Demand refers to the quantity of a commodity that the buyers are willing to…
Q: What elements of the employee dishonesty exposure make it difficult to estimate the size of the loss…
A: The loss is the difference between the economic cost and economic revenue. Economic revenue is the…
Q: The demand for a monopolist’s output is 5,000/(p + 3)2, where p is the price it charges. At a price…
A: q=5000/(p+3)2 The elasticity of demand measures the percentage change in the quantity demanded of a…
Q: What are the different classifications of Inflation? Define. 2. What are the types of Inflation?…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you as per…
Q: 4B. Which one(s) of the following functions v(x, y) = 2x°y³ - 100, w(x, y) = 3(x+y) + 120, t(x, y) =…
A: Introduction Utility is a measuring degree of satisfaction which an individual gets from the…
Q: What is GDP?
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A customer deposits his money in a bank for 10 million dollars for 2 years. If the deposit interest…
A: The value that depicts the value of the asset at a date in the future based on the rate of growth is…
Q: The productivity of a certain country with the utilization of x units of labor and y units of…
A: Given, f(x,y)=100x0.65y0.35
Q: 1. Given the following information: U= (1/3)X^Y*; Px = 6; Py= 6; I = 2,430, a. calculate the effect…
A: Disclaimer: The exponential power of Y in the utility function is not clear. I am assuming it is 4,…
Q: Suppose that you impose a specific tax of £20 per unit of output. What will be the monopolist’s…
A: Imposing specific tax means per unit tax is imposed. This implies that the marginal cost of the…
Q: A present amount of 5300 is invested into an account, which can be withdrawn after the end of 12.8…
A: The equivalent uniform annuity would be equivalent to growing annuity when both present value are…
Q: PRO Engineering is considering whether to purchase or lease a piece of earthmoving equipment.…
A: given that, The initial cost is $150,000 Residual value is $12,000 The maintenance cost is…
Q: Author claims, “The pandemic was unexpected shock. Climate change and climate policy are known…
A: The aggregate demand curve shows the inverse relationship between the price level and the total…
Q: You want to conduct a survey to determine the proportion of people who favor a proposed tax policy.…
A: The margin of error is a statistic tool with the help of which we can find the amount of random…
Q: Explain the impact of each of the following scenarios on ONLY the market for apples in Gauteng. •…
A: 1) When the cost of inputs rises, the cost of manufacturing the good rises as well. As a result,…
Q: In the Simple Keynesian Macroeconomic Model, which of the following will determine the level of…
A: "The level of autonomous spending by households is dictated by the level of autonomous consumption…
Q: You want to buy a $50,000 car. You can finance the car for 0.9% interest for 5 years. You decide…
A: Solved using Financial Calculator Assuming Interest rate is 0.9% per annum compounded monthly
Q: What are the global perspectives on small business?
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: discuss how that relationship between the elasticity of demand for products and labor would affect…
A: Introduction Labor economists disagree if the elasticity of labour demand is greater than or less…
Q: What are the effective strategies to make the rural bank capable to pay-off a short and long term…
A: Rural bank: Rural banks are rural-based unit banking organizations that mobilize financial…
Q: Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly…
A: Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly…
Q: Why floating exchange rate is more competitive than hard peg exchange rate?
A: In an economy whereby the supply and demand tools helps in setting the exchange rate, then such…
Q: Author claims, “The pandemic was unexpected shock. Climate change and climate policy are known…
A: The aggregate demand curve shows the inverse relationship between the price level and the total…
Q: Suppose the current level of output is. Y = $1,850. Are firms in this economy experiencing an…
A: The expenditure function also called the aggregate demand function, shows expenditure to be the sum…
Q: Pros and cons of stabilization policies relative to the self-correcting mechanism.
A:
Q: A firm has a production function QL,K=100L0.4K0.6 with a cost function CL,K=5L+30K. What is the…
A: Q(L,K)=100L0.4K0.6 C(L,K)=5L+30K w=5 r=30 Q=1000 MPL=dQ/dL=0.4(100)L-0.6K0.6 MPL=40L-0.6K0.6…
Q: Given the target reserve ratios, amounts of reserves and deposits shown in the table below, complete…
A: In this case we have been given with the values of target reserve ratio, reserves and the deposits…
Q: Given the following marginal cost values for a given asset, determine the equivalent uniform…
A: The marginal costs are $3,500 in year 1, $3,150 in year 2, and $3,400 in year 3 for an existing…
Q: Assume that sales are predicted to be $3,300, the expected contribution margin is $1,155, and a net…
A: To calculate the break-even point of a organization, the annual constant value is split by the…
Q: Marc is paid on a graduated commission scale. For the first $10,000 of sales his commission is…
A: There are various schemes being offered by various organisations in order to increase the sale…
Q: If a firm earns $500 million in profits for the year and they retain $175 million, how much do they…
A: Retained earnings are those earnings that are earned by the firm but have not been returned to…
Q: Economics Sukject Economethic Aove dummy Discuss how vasiable com be used to test (a) chonge in…
A: The link between two or more variables is investigated using regression analysis. The regression…
Q: 7. a. State and explain Arrow's Impossibility Theorem and its implications for social choice. b.…
A:
Q: b) Suppose a business faces a production function which is of the Cobb-Douglas form: Q(L,K) = AL“ K®…
A: Given output is a function of A, L and K. When we scale all factors of production in a given…
Q: what are the answers to part B, C, and D of this problem
A: National income is defined as the sum total of domestic income+Net factor income from abroad. The…
Q: Assume Gillette Corporation will pay an annual dividend of S$0.64 one year from now. Analysts expect…
A: D1 = 0.64 D2 = D1*(1 + g) = 0.64*1.127 = 0.7212 D3 = 0.7212*1.127 = 0.8128 D4 = 0.8128*1.127 =…
Q: (a) Some argue that excessive disposal of waste/litter in international waters occurs due to poorly…
A: Development along with the environment protection in order to keep the resources for next generation…
Q: "Tiffany" is a retailer monopolist who makes a unique product called the "diamond ring" that…
A: Monopolistic Market Monopolistic is a form of market where there is a large number of buyers and…
Q: 5. A truck for hauling coal has an estimated net cost of $55,000 and is expected to give service for…
A: Investment = $55,000, Salvage Value = $5,000, total service units = 250,000 miles, and usage for…
Step by step
Solved in 2 steps with 6 images
- A machine was purchased one year ago. Presently, the market value is $16,000 and it declines by $3,000 every year. For the next 3 years, the maintenance costs are as follows: Year Maintenance costs 1 $890 2 $1,290 3 $1,690 What is the marginal cost of extending the service for the 3rd year? A. $2,690 B. $5,490 C. $4,690 D. $5,690date period In Santa Barbara, the sales tax is 7.55%. What would be the final cost of a surfboard if it was being sold for $1,200 ?T has bought the new N2 for 80,000 Knuts and because the broomstick flies only with the wizard who bought it in the first place, the market value of this N2 is always 0 from tha point on. Moreover, there is an annual cost of maintenance for the broomstick which T has calculated to be as Cost(m) = 10,000 + 6,000 * (m-1), where m is the year. What is the AEC of this broomstick in its economic life year if the interest rate in the wizarding world is 0%?
- A firm manufactures padded shipping bags. A cardboard cartonshould contain 100 bags, but machine operators fill the cardboardcartons by eye, so a carton may contain anywhere from 98 to 123bags (average = 105.5 bags). Each padded bag costs $0.03.Management realizes that they are giving away of their outputby overfilling the cartons. One solution is to automate the filling ofshipping cartons. This should reduce the average quantity of bagsper carton to 100.3, with almost no cartons containing fewer than100 bags. The equipment would cost $18,600 and straight-line depreciationwith a 10-year depreciable life and a $3600 salvage value would beused. The equipment costs $16,000 annually to operate. 200,000cartons will be filled each year. This large profitable corporation hasa 28% combined federal-plus-state incremental tax rate. Assume a10-year study period for the analysis and an after-tax MARR of15%.Compute:(a) The after-tax present worth(b) The after-tax internal rate of return(c) The…uppose that you purchased a HVAC system five years ago for $75, 000. The O&Mcosts are $15, 000 this year and are expected to increase by $1, 000 each year for the next five yearsthen remain the same for the following years.The current salvage value of the system is $15, 000; salvage value after one year is estimated tobe $12, 000; after two years, $11, 000; after three years, $10, 000; after four years, $9, 000; and so on.A new industrial HVAC system is available for purchase at a price of $95, 000, including instal-lation. The market value of the new system will decrease at a rate of 15% each year. The O&Mcosts are expected to be $1, 000 in the first year, and will increase at a rate of 20% each year. Themaximum service life of the new system is 10 years. Assume that your company uses an interestrate of 10% for all project evaluations.(a) Find the remaining economic life of the currently owned asset.(b) What is the economic service life of the new system?(c) Use the…A firm manufactures padded shipping bags. A cardboard cartonshould contain 100 bags, but machine operators fill the cardboardcartons by eye, so a carton may contain anywhere from 98 to 123bags (average = 105.5 bags). Each padded bag costs $0.03.Management realizes that they are giving away of their outputby overfilling the cartons. One solution is to automate the filling ofshipping cartons. This should reduce the average quantity of bagsper carton to 100.3, with almost no cartons containing fewer than100 bags. The equipment would cost $18,600 and straight-line depreciationwith a 10-year depreciable life and a $3600 salvage value would beused. The equipment costs $16,000 annually to operate. 200,000cartons will be filled each year. This large profitable corporation hasa 28% combined federal-plus-state incremental tax rate. Assume a10-year study period for the analysis and an after-tax MARR of15%.Compute:(a) The after-tax present worth(b) The after-tax internal rate of return(c) The…
- Zodiac Furniture is considering the production of anew line of metal offi ce chairs. Th e chairs can be producedin-house using either process A or process B. Th e chairs canalso be purchased from an outside supplier. Specify the levelsof demand for each processing alternative given the costs in thetable. Fixed Cost Variable Cost Process A $20,000 $30Process B $30,000 $50Outside Supplier $0 $503. The Ajax Corporation has an overhead crane thathas an estimated remaining life of 10 years. The cranecan be sold now for $8,000. If the crane is kept in service,it must be overhauled immediately at a cost of $5,000.Operating and maintenance costs will be $3,000 peryear after the crane is overhauled. The overhauled cranewill have zero MV at the end of the 8-year study period.A new crane will cost $20,000, will last for 8 years,and will have a $4,000 MV at that time. Operating andmaintenance costs are $1,000 per year for the new crane.The company uses a before-tax interest rate of 10% peryear in evaluating investment alternatives. Should thecompany replace the old crane?No use excel A machinge has a first cost of $24,000. Its market value declines by 20% annually. The repair costs are covered by the warranty in Year 1, and then they increase $900 per year. The firm's MARR is 12%. Find the minimum EUAC for this machine and its economic life.
- New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $830,000, and it would cost another $22,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $485,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $17,500. The sprayer would not change revenues, but it is expected to save the firm $351,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25%. (Ignore the half-year convention for the straight-line method.) Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar. What is the Year-0 net cash flow? $ What are the net operating cash flows in Years 1, 2, and 3? Year 1: $ Year 2: $ Year 3: $ What…Pls help me to solve below homework : A Phellx Mining company is trying to decide whether it should purchase or lease a new mobile rusher. if purchased, the mobile crusher will cost $150,000 and is expected to have a $55,000 salvage value after 6 years. If the mobile crushed is purchased, It will be leased to mining companies whenever possible, an activity that is expected to yield revenues of $12,000 per year. Alternatively, the company con lease a mobile crusher for only $20,000 per year, but the lease payment will have to be made at the beginning of each year. If the company's MARK is 15% per year, should the mobile crusher be purchased or leased based on a future worth analysis? Assume that the annual lig&O awns. same.The sprayer's base price is $900,000, and it would cost another $21,000 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $510,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $15,500. The sprayer would not change revenues, but it is expected to save the firm $348,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25%. (Ignore the half-year convention for the straight-line method.) Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar.