For FW Method, if FW (i = MARR) = −30, then the project is economically _____________. justified barely justified sometimes justified unjustified none
Q: True or False AFC=ATC+AVC
A: Average cost refers to the total cost per unit of output. ATC = Total cost/ quantity
Q: What assumptions cause the immediate-short-run aggregate supply curve to be horizontal? Why is the l...
A: The short immediate-run aggregate supply curve is horizontal due to the assumption that both input a...
Q: How would you solve PART D (the one with externality) of this question? Thx
A: The budget line shows the combination of two goods that can be purchased with the given resources an...
Q: Why should the government let firms share technologies with other firms to ensure an efficient econo...
A: National prosperity is made, not acquired. It doesn't outgrow a country's regular blessings, its wor...
Q: 2A. In the lower mainland the equilibrium market rental rate is at $1,500/month and the equilibrium ...
A: Market rental rate = $1500/month Equilibrium quantity = 8000 units Rent control rate = $1800/ month
Q: Trying to figure out question: If a new home can be constructed for $150,000, what is the opportun...
A: Opportunity cost is the cost of opportunity forgotten in order to choose another opportunity. It is ...
Q: In the context of economic recession, explain monetary and fiscal measures that should be implemente...
A: Answer: Economic recession: recession refers to the period of a general decline of economic activiti...
Q: Is it worth investing in a project that costs up to 600 million dollars across 11 years but is expec...
A: Discount rate refers to the rate or interest rate by which future values are discounted such that th...
Q: The manager of a pizza shop must decide how much pizza he will produce at a given price. Which of th...
A: Consumer income refers to money earned by a consumer through employment or investment, such as divid...
Q: Suppose that when college students look for a part-time job, it takes on average 2 weeks to find one...
A: Job-finding rate: The term is job-finding rate refers to a rate at which people can find jobs. The f...
Q: Answer the question on the basis of the following table for a particular country in which C is consu...
A: Real GDP = C + I + G + X - M Price Level C I G X M Real GDP 128 18 2 3 1 5 19 125 20 4 3 2 4 ...
Q: A committee of 4 people is to be appointed from 3 officers of the production department, 4 officers ...
A:
Q: When the Fed decreases the discount rate, banks are likely to their lending anc the money supply O A...
A: The answer is- B) increase, increases When the fed decrease the discount rate, banks are likely to ...
Q: 5. Give an example of a scenario where principal agent problem exists.
A: Asymmetric information occurs when there is unequal information between two parties. In this situati...
Q: A market is modeled by the llowing đếmand supply fünctiöns! and Qs = 10P. If P=$5, determine if ther...
A: Qd=60-10PQS=10PP=$5
Q: Compare different types of economic systems
A: Different economies of the world have different economic system depending upon various factors like ...
Q: 4). Economist Abba Lerner proposed a tariff on oil imports. The tariff is designed to reduce depende...
A: So, one of the famous economists Abba Lerner once proposed a tariff on oil imports that is equal to ...
Q: Beginning about 1985, many developing countries, dissatisfied with the results of import-substitutio...
A: The nations around the globe are involved in the international trade with each other. The internatio...
Q: The question is: Draw the indifference curve diagrams for the utility functions listed below. Plot ...
A: The indifference curve shows the different combinations of two goods that provide the same level of ...
Q: In the Heckscher-Ohlin model, modelling supply chains A is impossible. B can invalidate the ...
A: H-O Model of free trade states that as countries advance toward free trade, the prices of the output...
Q: a. Draw the MSB and MSC curves on the graph below, assuming that the external benefits are estimated...
A: Hi! Thank you for the question, as per the honour code, we are allowed to answer three sub-parts at ...
Q: Suppose a firm builds a larger plant and increases its output. Which of the following statements is ...
A: If a firm builds new plants and increases its output, it moves from diseconomies of scale to economi...
Q: (3) A firms production function is Q(L) =15L' -0.1Ľ' , where output (Q) is a function of a single in...
A: Answer: Given, Production function: QL=15L2-0.1L3 (1). To find the number of workers required to max...
Q: Question 5 The price of input X decreases by 15%. In response, the quantity of input Y demanded incr...
A: Answer (5): Given, Percentage decrease in price=-15%Percentage rise in quantity demanded=6% Elastici...
Q: Price S1 20 18 16 14 SO Demand 300 400 500 1000 Quantity Assume that the market in the graph above i...
A: Tax revenue is the money that government gets as tax receipts by taxing a good.
Q: It costs 100, 000 pesos at the end of each year to maintain a certain portion of a highway. If money...
A: Given: The cost of maintaining a certain portion of a highway is = 100,000 pesos The money is worth ...
Q: Suppose Canada has a voluntary export restraint for lumber going to the U.S. Who captures the quota ...
A: Voluntary export restraints are game plans among exporting and bringing in nations in which the expo...
Q: (Figure: Market) A quota of 25 units is placed on the market that is shown in the figure. The quota ...
A: A quota is a type of limit imposed on the quantity in the market. It is generally imposed to restric...
Q: You are working for company that operates in a competitive industry, which sells flower bouquets. Th...
A: The quations is an example of perfect competition where marinal cost curve is equal to supply curve....
Q: True or False The average total cost cannot equal marginal cost.
A: Average total cost It refers to the total cost per unit of production. ATC = TC/Q where ATC is avera...
Q: The Law of Diminishing Utility: For example, I consume too many apples. Until I eat the fifth one, I...
A: The law of diminishing marginal utility basically refers that as consumption increases, the marginal...
Q: The following graph shows the demand (D) for gas services in the imaginary town of Utilityburg. The ...
A: Answer: Equilibrium in monopoly: a firm experiences equilibrium where the MC and MR intersect each o...
Q: The relationship showing that damage to the environment increases as a country's per capita income r...
A: The measure of the amount of money that is being earned per person in a geographic region or nation ...
Q: 13. The Transmission Mechanism This problem looks at typical transmission mechanisms as a result of ...
A: The central bank can take several measures in order to control the economy. There are various tools ...
Q: What is the labor force participation rate?
A: Definition The labour force participation rate expresses the number of persons who work as a percent...
Q: If you deposit dollar 10000 into a fund paying 6% interest compounded monthly. how much can you with...
A: Given the present value in the fund = 10000 Interest rate = 6% Monthly interest rate = 6%/12 = 0.5% ...
Q: Price level (P) LRAS, LRAS2 SRAS,
A: Aggregate demand (AD) is the sum of consumption, investment, government spending, and net exports. ...
Q: Marginal Utility is the additional satisfaction or utility from each extra unit of consumption. Tota...
A: Classical Theory of Demand : Classical theory of demand or Marshallian theory is the first systemati...
Q: Please calculate CPI and inflation using the following basket of goods (round outlays (for calculati...
A: Here, the information about the quantity of different goods and their prices are given for year 2021...
Q: 4. Consider an individual who lives for 2 periods and each period receives a constant income of $y p...
A: Given information U(X0,X1)=X02+βX12Income in each periodY1 and Y2interest rate=r
Q: True or False The slope of the total cost curve is equal to marginal cost, or the change in varia...
A: Total cost It refers to all the cost or expense that is incur in a production process.It is given by...
Q: A three-sector economy has following input-output coefficient matrix and final demand vector: 05 100...
A: Answer:
Q: Suppose that Bangladesh, a relatively poor, agricultural nation with a low level of technological de...
A: 1. The answer is - d. Enhanced flow of ideas
Q: 8:55 PM Assignment Print View c. When the total money supply decreases, there will be an adjustment ...
A: Sff1 - New supply of federal fund. Sff - supply of federal fund
Q: (1) For demand function Q, = a-bP and supply function Q, = dP-c, using Cramer's rule determine equil...
A: Market equilibrium basically refers to a situation in which the supply and the quantity demanded are...
Q: How useful is economic geography in explaining the success of regional economic integration blocs?
A:
Q: When a small economy imposes a tariff on imports, net welfare O always increases. O always decreases...
A: The imposition of tax on imports and exports by the government of the country or a union is being kn...
Q: In the figure below, Sai is the long-run domestic supply curve of oil without considering the climat...
A: Demand Curve: - demand curve is the graphical way of showing the relationship between the quantity d...
Q: 4 Suppose that a person’s demand curve for physician office visits is P = 200 – 20Q, where P is the ...
A:
Q: 1 The Law of Diminishing Utility: For example, I consume too many apples. Until I eat the fifth one,...
A: Utility refers to the usefulness or satisfaction that a person derives or gets from the use or consu...
For FW Method, if FW (i = MARR) = −30, then the project is economically _____________.
- justified
- barely justified
- sometimes justified
- unjustified
- none
Step by step
Solved in 2 steps
- Two machines are being considered for purchase. If the MARR (for this problem, also the minimum required interest rate) is 10%, which machine should be bought?Estimates for a proposed small public facility are as follows: Plan A has a first costof $50,000, a life of 25 years, a $5,000 market value, and annual maintenance expensesof $1,200. Plan B has a first cost of $90,000, a life of 50 years, no market value, andannual maintenance expenses of $6,000 for the first 15 years and $1,000 per year foryears 16 through 50. Let MARR be 10% per year.(a) Find the Net Present Value, and. Net Annual Value for the two alternatives.(b) Which ones are feasible, and which one would you choose if you had to pick oneof the two?When comparing multiple alternatives: a. Choose the alternative with the greatest PW over the planning horizon b. Choose the alternative with the greatest AW over the planning horizon c. Check our assumptions about the MARR, as this could impact our decision d. All of the above.
- Two mutually exculsive alternative are being considered for the environmental protection equipment at a petroleum refinary. one of these alternatives must be selected. The estimated cash flow for each alternatives are as follows. Use MARR of 10% Note: Do not round in between solutions and round up to 2 decimal places for final asnwer. A. Which alternative is preferred, based on the repeatability assumptions? Use AW method.An industrial park is being planned near a river. The river occasionally floods, and as a result theindustrial park planners are trying to decide how large of an embankment to build as protection. Theembankment is expected to last 50 years. The MARR is 12%. If the water rises above theembankment (regardless how much) and flooding occurs, the cost is $300,000. Using the data below,find the expected annual costs in each case and determine which embankment height should beselected.Embankmentheight(meters)Initial Costof EmbankmentProbability of water rising aboveembankment in any given year2.0 $100,000 0.3302.5 $165,000 0.1253.0 $300,000 0.0403.5 $400,000 0.0204.0 $550,000 0.01 Please attach an actual excel file too.A new manufacturing plant costs $530,000 to build. O&M are estimated to be $50,000 per year, and a salvage value of 25 percent of the initial cost is expected. The units the plant produces are sold for $60 each. Sales and production are designed to run 365 days per year. The planning horizon is 10 years. MARR is 10%. Determine the number of units that must be sold annually to achieve breakeven.
- Three independent project R, S, & T. If the PW of these projects at MARR is as follows: PWS= $80,000, PWR = -$50,000, PWT = $70,000. Write down the bundles that you can be immediately excluded from the analysis.An area can be irrigated by pumping water from a nearby river. Two competing installations are being considered. The MARR is 12% per year and electric power for the pumps costs $0.06 per kWh. Recall that 1 horsepower (hp) equals 0.746 kilowatts. (11.2, 11.3) a. At what level of operation (hours per year) would you be indifferent between the two pumping systems? If the pumping system is expected to operate 2,000 hours per year, which system should be recommended? b. Perform a sensitivity analysis on the efficiency of Pump A. Over what range of pumping efficiency is Pump A preferred to Pump B? Assume 2,000 hours of operation per year, and draw a graph to illustrate your answer.Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $18,500 per year. An emission reduction filter will cost $75,000 and have an expected life of 5 years. Carlisle’s MARR is 10%/year. Solve, a. What is the future worth of this investment? b. What is the decision rule for judging the attractiveness of investments based on future worth? c. Is the filter economically justified?
- You are faced with a decision on an investment proposal. Specifically, the estimated additional income from the investment is $125,000 per year; the investment cost is $400,000; and the first year estimated expense of $20,000 and will increase a rate of 5% per year. Assume an 8-year analysis period, no salvage value, and MARR = 15% per year. a. Calculate the PW and FW of this proposal? b. What is the ERR ( Ԑ=MARR) of this proposal? c. What is the Simple and Discounted payback? include the cash flow diagram and conclusionYou are faced with a decision on an investment proposal. Specifically, the estimated additional income from the investment is $125,000 per year; the investment cost is $400,000; and the first year estimated expense of $20,000 and will increase a rate of 5% per year. Assume an 8-year analysis period, no salvage value, and MARR = 15% per year. a. Calculate the PW and FW of this proposal? b. What is the ERR ( Ԑ=MARR) of this proposal? c. What is the Simple and Discounted payback? (Upload the picture of your complete solutions including the correct cash flow diagram and your conclusion.)You have been asked to perform a sensitivity analysis on a plant modernization plan. The initial investment is $30,000. Expected annual savings is $13,000. Salvage value is $7,000 after a 7 year planning horizon. The MARR is 12%. Determine the AW if the annual savings change by the following percentages from the initial estimate: b. -80%c. -60%d. -40%e. -20%f. +20%g. +40%h. Determine the percentage change in net annual savings that causes a reversal in the decision regarding the attractiveness of the project