L0.3 10.4) The following data are available for a project: Present worth of benefits $17 000 000 Present worth of operating and maintenance costs $ 5 000 000 Present worth of capital costs $ 6 000 000 a. Find the benefit-cost ratio. b. Find the modified benefit-cost ratio.
Q: True or false: A lump-sum tax on a monopolist will always increase the price charged by the monopoli...
A: If we assume that government impose 10% tax on the monopolists, then the fixed costs of the firm wil...
Q: In the BOP accounts, what are the four basic components of the current account? How can information ...
A: Four basic components of current account in BOP include: Goods Services Income and Current transfe...
Q: When a nation concentrates on a certain production activity based on a specific resource, which of t...
A: The nations around the globe tend to have a limited amount of resources with them, which is the basi...
Q: Price Quantity Demanded Quantity Supplied Dollars per unit) (Units) (Units) 36 12.00 10.00 3 30 8.00...
A: The curve that depicts various qunatities of godos and services being demanded by individuals at dif...
Q: All else being equal, a country whose currency has declined in value from year to year is likely to:...
A: The economics as a study is based upon the general idea that the resources which are present with th...
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: 15) For any cost function, you can find min ATC by etting ATC = and solving for q. %3D
A: Average total cost = total cost/ quantity
Q: A company has affiliates in seven countries. Each affiliate enters into transactions with the other ...
A: The company has determined that on average a remittance from one affiliate to another costs = $40 F...
Q: A mastercard compounds monthly and charges an interest of 1.5% per month. What is the effective annu...
A: Effective annual interest rate = 1+inn - 1 where i = annual rate of interest n = no of compounding p...
Q: If Y is labor intensive then, according to HO theorem, this country is abundant capital O labor both...
A: The H-O theorem states that a country will export that good that is intensive in the country's abund...
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: Refer to Figure 7-5. If the price of the good is $12, then consumer surplus is O a. $9. O b.SI1. OC ...
A: Consumer surplus is the area below the demand curve and above the price line.
Q: Suppose the economy currently has an inflation rate of 7%. Moreover, the slope of the economy's Phil...
A: For a classical model of Phillips Curve we assume that the production function in economy is only a ...
Q: Instructions: Enter your responses as a whole number. a. What price will prevail in this market? b. ...
A:
Q: Which of the assumptions about perfectly competitive markets is false? O any single firm can influen...
A: Perfectly competitive markets is that forms of market in which there are larger number of buyers and...
Q: Using the information in the following table on Mexico’s 1996 international transactions to answer t...
A: Balance of trade is defined as the difference between the value of exported and imported goods and s...
Q: 9. With the Second MD Curve, would the Central Bank need to change the Money Supply by more or less ...
A: The money supply is determined by the central bank of the country. The central bank increases or dec...
Q: 1. Welfare effects of free trade in an exporting country Consider the Bolivian market for lemons. Th...
A: Equilibrium occurs at the intersection of demand and supply Consumer surplus is the area above the p...
Q: What is the difference between independent floating, managed floating, and fixed exchange rate syste...
A: In the international market, when countries decides to make an economic exchange, the price of the g...
Q: Currently, interest rate on euro is near zero while the (Fed Funds) interest rate on dollar is about...
A: A lender charges a borrower an interest rate that is a percentage of the principle (the amount borro...
Q: ATul gets a pocket money allowance of. $ 12 per day. Thinking that this was rather less, he asked hi...
A:
Q: The diminishing marginal product implies that the total product is decreasing at an increasing rate
A: Here we can find that the TP first increases in an high rate after which it increases but at a slow ...
Q: Why a cashless society are risks over opportunities? How does it destroy people's daily life?
A: Cashless society refers to the economy where people generally make transactions digitally through ba...
Q: Briefly explain allocative efficiency and how it is achieved.
A: Demand curve had an indirect relationship with the price.
Q: Consider two people called Young and Old. Young and Old live together. Young can choose to party or ...
A: Bargaining or haggling is a type of negotiation in which the buyer and seller of a product or servic...
Q: Figure 8-8 Suppose the government imposes a $10 per unit tax on a good. Price 24 22+ 20 18 Supply 16...
A: Tax in any economy creates the dead weight loss which is the sum of loss in consumer and producer su...
Q: ased upon Dubai’s resources, capabilities, and competencies pursuits, what seems to be their trade t...
A: Dubai's income comes fundamentally from oil yet just a moderate measure of oil saves were utilized t...
Q: How Zuwaina is helping Oman’s economy, explain?
A: In this situation, Zuwaina, the Chief Executive Officer of Dar Al Herfya (World of Handicrafts), spe...
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: 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: ad suppose that The firm with flexible prices follow p =P+a(Y – Y), The firm with sticky prices foll...
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three question for you....
Q: Suppose that the production function for the economy is given by: Y = AL/3K/3 Suppose that this econ...
A: Aggregate demand is the total demand of the economy and aggregate supply is the total supply of good...
Q: What actions can help a firm grow?
A: Expànding the company can take a wider rànge. The CEO may develop new businesses, expand new countri...
Q: QUESTION 7 If E(X) = 0, then V(X) must equal to: OA 0 Ов. 1 OC E(X2) D.none of the above
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...
Q: TRUE OR FALSE Concerning public opinion, Optimists prefer that government officials serve as Delegat...
A: In an economy, behavior of the people influence the overall functioning as the behavior explains the...
Q: The marginal cost of providing a taxi trip is $5.00. Each taxi has the ability to make 20 trips per ...
A:
Q: decide whether to bring out a full, partial or minimal product line. The company has three levels of...
A: Answer is given in the attached picture:
Q: Practice Question 1 If the price of the product is GH¢2.00 and cost per unit of labour is GH¢10.00, ...
A: Given: Price of product (P)=GH 2 Cost of labor=GH 10
Q: Which TWO of the following statements are correct? O a. The value of unsold goods that have been pro...
A: GDP - it is the value of all finished goods and service produced within a country within specific ti...
Q: Ricky's Donuts sells premium donuts. Premium donuts have toppings. The demand for premium (PR) don...
A: Given: PPR= 5.70 - 0.45QPR MCPR= 0.20
Q: Is Canada in a recessionary gap or inflationary gap right now? and how could you tell?
A: GDP and price level are determined when aggregate demand and aggregate supply intersect each other. ...
Q: The first table displays Congressional Budget Office forecasts made in January 2015 of future federa...
A: Dear student, you have asked multiple sub-part questions in a single post. In such a case, I will be...
Q: Using appropriate graphs and mathematical expression, briefly discuss one macroeconomic view of heal...
A: Macroeconomics is the study of the behavior of a whole economy, such as a market or other large-scal...
Q: A government official announces a new policy. The country wishes to eliminate its trade deficit, but...
A: An administration official declares another strategy. The goal is to take out its import/export imba...
Q: Teasha has worked in a gift store for the last two years and gained a lot of experience and knowledg...
A: Consider the scenario, to start a business of one's own an individual or an entrepreneur needs capit...
Q: Using a production possibility frontier, an arbitrary price line that does not equate supply and dem...
A: Production Possibility Frontier is the locus of points of production combination which an economy ca...
Q: Two factories mamufacture the Number of Defects same machine parts. Each part is classified as havin...
A: Answer is given in the picture:
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: The demand function for rooms is Q,(p) = 700 - 5p, where Q, is the number of rooms demanded and p is...
A: Profit maximizing quantity is such quantity where marginal revenue is equal to marginal cost.
Q: Gabriel has a weckly income (N) of $50, which he uses to purchase cupcakes (C) and tea (7). The pric...
A: Budget line curve Px*X + Py*Y = m where Px represents price of good X Py represents price of good Y ...
the answer to this question is Q10.3= a= 1.546, b= 2 plz help mw with this question
we just need to find how we get that answer for this question, please help NO EXCEL
Step by step
Solved in 2 steps
- 10 . Cost-benefit analysis A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is and . Thus, the visual appearance would be classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $38,080. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 1,830 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $16. The benefit of the beautification initiative, as suggested by the survey, is . Because the estimated benefit is than the cost, the college administrators undertake the beautification initiative. The calculation of…Cost-benefit analysis A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing. For the students of the college, the visual appearance of the campus is and . Thus, the visual appearance would be classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $64,470. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 2,510 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $20. The benefit of the beautification initiative, as suggested by the survey, is $ . Because the estimated benefit is than the cost, the college administrators undertake the beautification initiative. The calculation of the benefit of the beautification…Q. 2 (PLEASE DO THIS IN EXCEL) Hannah Byers and Kathleen Taylor are considering the possibility of teaching swimming to kids during the summer. A local swim club opens its pool at noon each day, so it is available to rent during the morning. The cost of renting the pool during the 10-week period for which Hannah and Kathleen would need it is $1,700. The pool would also charge Hannah and Kathleen an admission, towel service, and life guarding fee of $7 per student, and Hannah and Kathleen estimate an additional $5 cost per student to hire several assistants. Hannah and Kathleen plan to charge $75 per student for the 10-week swimming class. a. How many students do Hannah and Kathleen need to enroll in their class to break-even? b. If Hannah and Kathleen want to make a profit of $5000 for the summer, how many students do they need to enroll? c. Hannah and Kathleen estimate that they might not be able to enroll more than 60 students. If they enroll this many students, how much would…
- The following table gives the available projects (in $millions) for a firm. A B C D E F G 114 44 84 74 174 64 44 Initial investment 164 94 89 −34 54 56 34 NPV If the firm has a limit of $306 million to invest, what is the maximum NPV the company can obtain? Multiple Choice 296 379 403 491Multiple choice question: Suppose a high-speed rail system is proposed that will save commuters from the suburbs a lot of valuable time. If the high-speed rail system is built, the value of homes in the suburbs will increase because of the easier commute. When estimating the potential benefits of the high-speed rail system: A. it is important not to double count benefits since the rise in home values is caused by the time savings. B. it is important to count both the rise in home values and the value of time saved by commuters. C. neither the rise in home values nor the value of time saved by commuters is considered a benefit of investing in the high-speed rail system. D. the increased value of suburban homes is considered a cost rather than a benefit.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.
- 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.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…
- 7 uppose the Queensland Government is considering a project where COVID vaccinations can be provided to the general public within a popular shopping centre. The project is expected to last 5 years, with an initial investment cost of $7,500. The ongoing cost of the project is $1,400 in rent and 7 casual workers who administer vaccinations for 60 hours each, per year at a minimum wage of $15/per hour. The opportunity cost of labour in the area is 40% of the minimum wage. The Government is considering charging $6.50 per vaccination and is expected to administer 1,400 vaccinations per year from this program. It has also been determined that the program will provide an external community benefit of $550 per year. If the appropriate discount rate is 6.5%, determine the following: a The NPV of market b The NPV of Social CBA c The IRR of MArketWater rescue situation Determine what should be done first and last as well as the available resources in the scenarios. 1. You were on the schools swimming pool to practice your butterfly stroke for an upcoming competition and are the only one in the pool area when you noticed someone floating in the pool's 8ft area. When you checked what it was, you were shocked to find a person floating and unresponsive to your calls.A firm must decide whether to construct a small, medium or large stamping plant. A consultant’s report indicates a 0.20 probability that demand will be low and 0.80 that demand will be high. If the firm builds a small facility and demand turns out to be low, the Net Present Value (NPV) will be $42M. If demand turns out to be high, the firm can either subcontract and realize the NPV of $42M or expand greatly for a Net Present Value of $48M. The firm could build a medium-size facility as a hedge: if demand turns out to be low, its NPV is estimated at $22M; if demand turns out to be high, the firm could do nothing and realize a NPV of $46M, or could expand and realize a NPV of $50M. If the firm builds a large facility and demand is low, the NPV will be ($20M), whereas high demand will result in a NPV of $72M. Analyze and solve this problem using a decision tree What is the Maximin Alternative and Compute the EVPI