nd the value of x that makes the equivalent annual worth in years 1 through 9 equal to $700 per year. e an interest rate of 11% per year. e cash flows in year 0 and year 9 has an unknown value x, and 1 through 8 has an annual worth of 00. e value of x is determined to be $
Q: 2 COLD BREW VS. ICED COFFEE Lauren's preferences over cold brew, C, and iced coffee, I, are given by…
A:
Q: Unsure where to plot equilibrium
A: Demand curve plots the quantity demanded by the consumers at different prices during a given period…
Q: A brand new car costs ₱500,000 and the salvage value is 10% of the original cost after 20 years.…
A: The Straight-Line Method (SLM) of depreciation is a widely used method to calculate the annual…
Q: Question 20 Hide Correct Answer Show Responses Suppose there is a negative output gap of 12 (the…
A: potential output level means that economy is producing at full capacity and beyond that production…
Q: Suppose the same linear (inverse) demand function is represented by the equation, P = 100 - .25Q.…
A: Consumer surplus is an economic concept that represents the difference between the maximum amount a…
Q: Which was not one of the reasons of adopting nationalism for Mercantilist? Select one: a. To…
A: Mercantilist refers to the group of the individuals who believed that the economic growth can be…
Q: they share the market equally. Costs are given by (g) = 16g. Because of government regulation, firms…
A:
Q: Loc WATERMELON (Pounds) Ashima On the following graph, use the blue line (circle symbol) to plot…
A: The production capacity of a nation depends on the available resources to produce that particular…
Q: Suppose the Canadian demand for and the Japanese supply of cars to Canada is shown in the table…
A: Here, the given table shows quantity demanded and quantity support of Japanese car to Canada at…
Q: The subway fare in your town has just been increased from 50 cents to $1.00 per ride. As a result,…
A: Price elasticity The demand-price elasticity is a gauge of how a product's consumption changes in…
Q: uppose the government sharply increases the minimum wage, raising the income of many workers.…
A: AD and AS model determines the output and price level in the economy. when AD=AS the economy…
Q: 3.2 Suppose the market demand for a cup of cappuccino 18 given by QD = 24-4P and the market supply…
A: Qd = 24 - 4P Qs = 8P - 12
Q: The table below shows the parameters for the economy of Hutu. Give your answers to one decimal…
A: Aggregate demand is a term used in macroeconomics to describe the total demand for goods produced…
Q: 1 2 5 3 Peanut Butter 6 4 Printer Paper 7 1. For each of the following events, state which curve…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…
Q: A construction management company is examining its cash flow requirements for the next few years.…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: The following calculator shows the demand curve for sedans (for example, Toyota Camrys or Honda…
A: The supply-demand connection is significant because it determines the pricing and quantity of most…
Q: Fill in the blanks. a. If one Canadian dollar equals $0.7 American, then one U.S. dollar equals $ b.…
A: Exchange rate refers to the rate at which the currency of one country is exchanged for the currency…
Q: c) The consumers utility function is given by U(XY)-4X+3Y and the given bundle is X-3 and Y - 12. i)…
A:
Q: At 5.2 percent interest, how long does it take to double your money?
A: Let the present amount be P. P is compounded annually at the rate of 5.2% for n number of years
Q: Suppose that Andrew and Beth are the only suppliers of ice cream cones in a particular market. The…
A: They will not be a straight line as they don't satisfy straight line equations
Q: Lucia owns a plot of land in the desert that isn't worth much. One day, a giant meteorite falls on…
A: Given:- Lucia marginal cost=0 Lucia charges price=$4 No. of market=2 i.e Market A and Market B…
Q: Consider the technology function f(z1,z2) = 2zk + zk. Suppose that w] = 64, that w2 = 52, and that…
A: With a given production function, a firm tries to minimize its total cost of production by choosing…
Q: You’re trying to save to buy a new $245,000 Ferrari. You have $50,000 today that can be invested at…
A: Future value is the amount that you will receive in the future after your investments have grown at…
Q: Please use the following supply and demand schedules to answer the questions below: Price Quantity…
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: Consider an exchange economy with two consumers, Jack and Blue, who trade only two goods: Cookies…
A: Pareto optimality is a concept in economics that refers to a state where it is not possible to…
Q: Nominal GDP $550 560 576 586 5 604 The economy described in the table has experienced a Orising…
A: Real GDP is calculated based on the base year price. It is an inflation-adjusted calculation of the…
Q: The average nominal incomes earned in Eturia and the CPI are shown in the table below. Nominal…
A: What is PCI? PCI or per capita income signifies the total income earned per person within an…
Q: GDP per capita — According to the World Bank, for 2018 Mexico had a Gross Domestic Product or GDP of…
A: GDP per person will be computed as nations gross domestic product divided by its population; and…
Q: There is a new government in a developing country which is a member of the IMF and the World Bank.…
A: Introduction A new government of a developing country, which is a member of the IMF, and World Bank…
Q: Which of the following will result in a surplus in the BOP? Select one: a. Capital Outflows greater…
A: Balance of payment refers to the account which maintains all the international transactions of a…
Q: It must be answered in a maximum of five sentences only. Is being trapped within the processes and…
A: The term "globalisation" refers to the process by which trade and technology have linked and…
Q: What is the fixed cost? $[ What are the Variable Costs? $[ If the merchandise is very popular among…
A: The fixed cost can be calculated by subtracting the variable cost from the total cost. The variable…
Q: Suppose the potential output is 50 trillion and autonomous spending is 10 trillion. Compute the mpc.…
A: MPC is the marginal propensity to consume. M)C is calculated as the change in consumption divided…
Q: 6. What is the opportunity 7. What is the opportunity cost of a burrito? cost of a soda?
A:
Q: above to answer this market? e a shortage of 150 units. e a shortage of 100 units. e a shortage of…
A: Equilibrium in the market occurs at the intersection of the demand and supply curves. If quantity…
Q: A brand new car costs ₱500,000 and the salvage value is 10% of the original cost after 20 years.…
A: Depreciation is an accounting technique used to distribute a tangible asset's cost that is over the…
Q: 3. The quantity of a commodity demanded by a consumer is influenced by the price of the commodity. O…
A: A consumer refers to a person or organization that uses goods and services to satisfy their wants…
Q: b. Consider a vacant acre of land that rents for $500,000 per year after taxes. Assume this rent…
A: Market value refers to the price that a property or the asset would can be fetch in the marketplace…
Q: A single firm monopolizes the entire market for medicine XYZ. The firm faces a market demand curve…
A: Disclaimer: - since you asked multipart question, we are solving only first 3 subparts as per…
Q: what is the present value of this liability?
A: Here the Future value of the liability that has to be paid over a period of 19 yrs is. :- $414 time…
Q: Consider the representative consumer who decides consumption and leisure. The preference is given by…
A: The utility function is a positive relationship between the consumption of goods and services and…
Q: A company sells one of its products for $42 each. The monthly fixed costs are $2700. The marginal…
A: Given information: A company sells its product for $42 each => P = $42 -------------------------…
Q: The accompanying graph shows the labor market in the country of Harmonia. Assume that the Harmonia…
A: The equilibrium in the labor market is a situation when the supply of labor by the households is…
Q: 2. A friend has started a business selling software. The software is a great hit, and the firm…
A: Present value of an annuity is given as: => P = C *{1 - (1+r)-tr}P : Present value C : per year…
Q: Jasmine purchased a home in 2014 for $300,000. She incurs the loss of $75,000 in fire damage. The…
A: In exchange for financial security against prospective losses or damages, an individual enters into…
Q: 4. Distinguish between economies of scale and diseconomies of scale. Give examples of why a firm may…
A: The average fixed cost (AFC) is the fixed cost that doesn't change with the adjustment of the…
Q: 5. Show why a $10 billion reduction in government purchases of goods and services will have a larger…
A: Aggregate Demand: Aggregate demand in an economy is the sum of private consumption expenditure (C),…
Q: a. The size of its recessionary gap is $ b. The size of this gap as a percentage of its actual GDP…
A: Okun's Law is an empirically observed relationship between unemployment and losses in a country's…
Q: Quick Computing currently sells 10 million computer chips each year at a price of $20 per chip. It…
A: Old Chip Sells = 10 million chips Price = $20 per chip Cost = $6 Introduction of new chips…
Q: Ms. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln…
A: Definition of Straight Line Method A depreciation expense refers to a fall in the cost of the asset…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Two different types of hydraulic equipment are being considered for a certain power plant. Machine A has a first cost of P 12,000, salvage value of P 1,500 at the end of its life of 6 years, and maintenance cost of P 900 annually. machine B has a first cost of P 13,600, no salvage value after 8 years, and annual maintenance of P 700. Money is worth 7%. What is the annual worth of machine A if annual revenue is P 4,200?A new project is being planned for a study period of 8 years. It will require P250,000 for the start-up and after theend of the first year, P13,500 shall be paid for its innovation. The board then requires to add another modifiedtechnology which will cost P25,000 by the end of the second year. After the end of third year, the project will startto earn P57,500 annually. Calculate the annual effective interest rate using ERR method if the interest rate externalto this project (ε) is 13.75%.A new project is being planned for a study period of 8 years. It will require P250,000 for the start-up and after theend of the first year, P13,500 shall be paid for its innovation. The board then requires to add another modifiedtechnology which will cost P25,000 by the end of the second year. After the end of third year, the project will startto earn P57,500 annually. Calculate the annual effective interest rate using ERR method if the interest rate externalto this project (ε) is 13.75%. Please solve using economics formula.
- A firm is considering purchasing equipment that will reduce costs by $40,000. The equipment costs $300,000 and has a salvage value of $50,000 and a life of 7 years. The annual maintenance cost is $6,000. While not in use by the firm, the equipment can be rented to others to generate an income of $10,000 per year. If money can be invested for an 8% return, is the firm justified in buying the equipment? Solve using: Present Worth Method Rate-of-Return MethodCalisto Launch Services is an independent space corporation and has been contracted to develop and launch one oftwo different satellites. Initial equipment will cost $750,000 for the first satellite and $850,000 for the second.Development will take 5 years at an expected cost of $150,000 per year for the first satellite; $120,000 per year forthe second. The same launch vehicle can be used for either satellite and will cost $275,000 at the time of the launch5 years from now. At the conclusion of the launch, the contracting company will pay Calisto $2,500,000 for eithersatellite.Calisto is also considering whether they should consider launching both satellites. Because Calisto would haveto upgrade its facilities to handle two concurrent projects, the initial costs would rise by $150,000 in addition to thefirst costs of each satellite. Calisto would need to hire additional engineers and workers, raising the yearly costs to atotal of $400,000. An additional compartment would be added to…Littrell's Nursery needs a new irrigation system. System one will cost $145,000, have annual maintenance costs of $10,000, and need an overhaul at the end of year six costing $30,000. System two will have first year maintenance costs of $5,000 with increases of $500 each year thereafter. System two would not require an overhaul. Both systems will have no salvage value after 12 years. If Littrell's cost of capital is 4%, using annual worth analysis determine the maximum Littrell's should be willing to pay for system two.
- The annual income from an apartment complex is $23,155. The annual expense is estimated to be $2,588. The apartment complex could be sold for $110,110 at the end of 10 years. If your MARR is 10%, how much should you pay for the apartment complex if you were to buy it now?1. The HVAC engineer for a company constructing one of the world's tallest buildings (Shanghai Financial Center in the People's Republic of China) has requested that $500,000 be spent now during construction on software and hardware to improve the efficiency of the environmental control systems. This is expected to generate revenue of $95,000 per year, and Maintenance and energy cost is assumed to be $85,000 annually. It also expected that there is a $100,000 salvage value at the end of 10 years. If MARR = 5%, a) What is the first year Rate of Return of this proposal? b) What is the excess, using annual worth method, of this proposal? c) Compute the Net Future Worth of this proposal? d) What is the simple payback period for this proposal? e) What is your conclusion on the about the acceptability of this proposal?Consider the comparison between alternatives A and B. Using present worth method of analysis, and at an interest rate of 10% per year, the values of n that you should use in the uniform series factors to make a correct comparison are: A B First Cost ₱500,000 ₱900,000 Annual Operating Cost ₱100,000 ₱40,000 Salvage Value ₱130,000 ₱150,000 Life 3 years 6 years a. n=3 years for A and n=3 years for B b. n=3 years for A and n=6 years for B c. n=6 years for A and n=6 years for B d. n=6 years for A and n=3 years for B
- Engineering Economics You bought a new car which you intend to use as a public utility vehicle for P950,000. The expected life of the car is ten (10) years for its intended use. Your driver and you agreed that for the first five (5) years , your “boundary” is P1,500.00 per day and P1,000.00 per day for the rest of its economic life. You also expected a repair and maintenance costs of P30,000 every six (6) months from year one (1) to five (5) and P50,000 from year six (6) to ten (10). At the end of 10 years you can sell the car for P100,000. If your MARR on invested capital is 15% every (6) months, determine whether this is a good investment. Use the Annual Worth method in your solution. Indicate all other assumptions you use in your analysis. Manually solve and don't use excel as a solution.Engineering Economics You bought a new car which you intend to use as a public utility vehicle for P950,000. The expected life of the car is ten (10) years for its intended use. Your driver and you agreed that for the first five (5) years , your “boundary” is P1,500.00 per day and P1,000.00 per day for the rest of its economic life. You also expected a repair and maintenance costs of P30,000 every six (6) months from year one (1) to five (5) and P50,000 from year six (6) to ten (10). At the end of 10 years you can sell the car for P100,000. If your MARR on invested capital is 15% every (6) months, determine whether this is a good investment. Use the Annual Worth method in your solution. Indicate all other assumptions you use in your analysis.Use manually solve and don't use excel.No written by hand solution Manager of a computer company plans to spend on new hardware $1.0 million in the first year with amounts decreasing by $0.5 million each year thereafter. Income of the company is expected to be $6.0 million the first year increasing by $0.1 million each year thereafter. Determine the annual worth over the years 1 through 5 of the companies net cash flow at annual interest rate of 10%.