What is the best alternative using incremental Analysis? Use MARR = 15% A B C Capital Investment $ 2,000 7,000 4,200 Aппиal Revenиes 3,200 8,000 6,000 Аnпual Costs 2, 100 5, 100 4,000 Market Value at the end of useful life 100 600 420 Useful Life (in years) 10 10 10 The correct ranking of Alternative is Blank 1 Select Alternative Blank 2 Note: Do not put comma, unit of measure and limit your answer to two decimal places. Ex: A-B-C
Q: Which of the following are part of ACA provisions/rules? (Choose all that may apply) Defining the…
A: The answers are - a. Defining the"essential health benefits" that all plans must cover. b.…
Q: 4. An industry has 50 perfectly competitive firms, which have the cost function c(y) = 100 + 0.25y2.…
A:
Q: Which of the following production functions exhibits decreasing returns to scale? A) Q=K^1/2 L^1/2…
A: We multiply all the inputs by a constant factor λ. And we check that if our output is affected by…
Q: Assume the following model of a closed economy: Y = C + I + G C = 120 + .5(Y – T) I = 100 – 10r…
A: For IS equation Y = C + I + G Y = 120 + .5(Y – 50) + 100 – 10r +75 Y = 295 + 0.5Y - 25 - 10r Y -…
Q: 99 79 75 139 99 MR Suppose that Figure #1 depicts the demand conditions for the City of Brantfor…
A: *Answer:
Q: Suppose Joe and Sarah each have a patent on their respective product: no other supplier can provide…
A: Given, Consumer Demand of Joe and Sarah :Qjoe=300-15Pjoe+10PsarahQsarah=300-15Psarah+10PjoeCosts…
Q: If a decrease in aggregate demand causes real output to fall below the economy's full-employment…
A: Fiscal policy is taken by the government of the economy while monetary policy is taken by the…
Q: true/false 1. The "Marlboro Man" was an image of a cigarette smoking cowboy placed in rugged…
A: Since you have posted a multiple question, we will solve first question for you. In case you want…
Q: An increase in government spending would affect GDP if ? the long-run aggregate supply is…
A: In an economy, the condition of goods market is explained by the intersection of aggregate demand…
Q: If the price elasticity of demand for labor is 0.2 and the wage increased from $11 to $16 an hour,…
A: Given information, Price elasticity of demand for labor: 0.2 Initial wage: $11 Final wage: $16 To…
Q: If the company ties the two products together, what price should the company charge for the bundle…
A: Production cost: Cost of raw material+direct labor+ burden during production.
Q: Explain the resource curse phenomenon and discuss how its effects can be be mitigated including the…
A: Answer- Oil curse is a very complex phenomena, because of poor management and investment by all oil…
Q: b) What are the costs and the benefits of each type of foreign exchange contract and strategy?
A: A foreign exchange contract is a contract between two parties that is legally binding. It is to…
Q: (6) For each situation, solve for the Cournot-Nash equilibrium (Capacity Constraints) 6a) Suppose…
A:
Q: What are the two different classifications of tariff? What iseach designed to do?
A: Trade is defined as the exchange of commodities and services across the boundary of the country.…
Q: estion 3 If "Abu Ahmed" buys a medicine produced by a Jordanian firm operating in Kuwait: O "Jordan…
A: The monetary value of final goods and services produced in a country during a certain period of…
Q: A certain simple economy has two sectors: work and play. To produce $1 of work requires $0.7 of work…
A: Kindly find the explanation and solution to the question below.
Q: If there is a negative production externality affecting a market (where the firm mistakenly tries to…
A: In a market with negative production externality, it can be said that the production of the good…
Q: An economy is described by the following equations: C=150+0.5 YD I=150 G=200 T=? What is the value…
A: Aggregate expenditure (AE) in closed economy is the sum of consumption, investment, and government…
Q: how are aggregate output and the real interest rate determined in competitive equilibrium?
A: Answer- competitive equilibrium is a situation where maintained balanced without any external…
Q: The graph below shows the daily demand for entry into the downtown core of a major city by commuter…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: Answer the following options Q#9) What has been true about the long term growth rate and growth…
A: GDP is the monetary worth of all products and services generated inside a country's borders in a…
Q: Figure 10: Changes in total transport cost - Second Scenario Finland France Germany Greece reland…
A: Change in demand is defined as the shift in aggregate demand in the economy due to different…
Q: Need asap... If you invest $750 at an interest rate of 7% compounded annually how much would the…
A: Given:Present worth (PV)=$750Interest rate=r=7%Number of years= n=5 years
Q: In the forces at play: model with horizontal product differentiation there are two and effects.…
A: In a market, there are different types of management system used by the firms when dealing with the…
Q: Network externalities exist when a good's value to the consumer rises: A) as the number of people…
A: The benefit or cost that is being caused by a producer that is not being received or incurred…
Q: Do you agree with the goals and ideas of the proposed FTAA?Why or why not?
A: The planned Free Trade Area of the Americas includes 34 countries from Central, North, and South…
Q: Which of the following stocks is riskier if you are considering investing in X or Y only? Stock…
A: Concepts: In finance, standard deviation helps to determine the spread of asset prices which helps…
Q: small town.He sells whiskey in one-ounce glasses. For simplicity, let’s assume it doesn’t cost Jack…
A: Both part solved below,
Q: A consumer has a utility function such that the marginal utility for good x is given by MUx-(2y/(3x)…
A: Here, the marginal utility of X is given 2y/3x and marginal utility of Y is given as 1/y.
Q: d. Suppose there are ten fringe firms instead of five. How does this change your results? e. Suppose…
A: (d) There were 10 fringe firm instead of 5. Q=400-2p MC=20+5q So, supply will Price= marginal cost…
Q: A company manufactures and sells x television sets per month. The monthly cost and price-demand…
A:
Q: O a) Patent law b) Trademarks law c) Copyrights law Od) Trade secret law e) International law
A: IP is safeguarded in regulation by, for instance, licenses, copyright and brand names, which empower…
Q: Discuss "THE NORTHWEST PASSAGE" discovery and its significance to international trade
A: One of Canada's most exciting chapters of discovery, history, and exploration is the Northwest…
Q: Firm B operates in a perfectly competitive market. If the firm is producing at the profit maximizing…
A: A perfectly competitive firm is a price taker. They accept the market price as given.
Q: How to construct a Ad, SRAS and LRAS curve for economy with.. full employment Economic boom A…
A: LRAS is vertical at full employment. There is an economic boom when more than full employment output…
Q: Fiscal policy can be classified into which two groups
A: Fiscal policy alludes to the public authority activity to impact the market by making changes in tax…
Q: Between 2017 and 2018, the CSPI increased by |. Between 2018 and 2019, the CSPI increased by Which…
A: Inflation is a steady rise price of goods and services. Inflation is usually measured by an index…
Q: In a Cournot model, firms Go and Stop compete by producing good X. Demand is X = 50 - 0.5P, where P…
A: We have given Demand: P=50-0.5X TC =0 for both firm If firm Go produces X1 and firm stop produces…
Q: A division of Midland Oil & Gas has a taxable income (TI) of $9.45 million for a tax year. If the…
A: Given, Taxable Income : $9,450,000Tax rate : 6%Before Tax Return : 22% per year
Q: Financial market participants anticipate that inflation will rise significantly in the future.…
A: A yield curve is a graph that compares the yields (interest rates) of bonds with similar credit…
Q: A man owes P12, 000 today and agrees to discharge the debt by equal payments at the beginning of…
A: Payment is done by the beginning of the quarter it is same as the case we know about annuity…
Q: You own several copiers that are currently valued at $10,000, combined. Annual operating and…
A: Economic lives for an asset refers to the time period when the asset is useful for the owners. The…
Q: Sandy receives utility from consuming berries (X) and nuts (Y) as given by utility function u(X,Y) =…
A: Given nuts/ barriers ratio = 62/17 = 3.647
Q: price level LRAS SRAS1 SRAS2 Refer to the above Figure. If the economy is AD1 AD2 quantity of output…
A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…
Q: GDP Counting Activity Consumption Expenditures (A) Gross Private Domestic Investment (B) Government…
A: We are going to solve this question providing appropriate answer using definition of the term…
Q: Suppose computers are imported into the US from Japan and face a tariff of $75 each. Assume the…
A: A tariff basically refers to a tax imposed by one country on goods and services imported from…
Q: 43% of small businesses are either not tracking inventory or using manual processes, such as…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: (a) hat te of substit at max 1izing e (b) What is the price of y at your utility-maximizing…
A: Marginal rate of substitution = (Marginal utility of X / Marginal utility of Y) It tell about how…
Q: Why do externalities cause market failure? What types of government actions or regulations can be…
A: The answer is as follows:-
Step by step
Solved in 3 steps
- 4. Using the incremental B / C analysis (∆B/C). Determine the best alternative.5. Using the incremental rate of return (∆RoR) analysis. Determine the best alternative. MARR =10%. A B C DFirst cost 45,000 $25,000 $35,000 $15,000O &M Cost/year $4,000 $1,500 $3,000 $2,000Benefit/year $15,000 $9,500 $14,000 $8,000Salvage value $9,000 $5,000 $7,000 $3,000Life in years 10BASED ON ESTIMATES THE DATA FOR TWO TYPES OF BRIDGES WITH DIFFERENT LIVES ARE AS FOLLOWS. IFTHE MINIMUM RATE OF RETURN IS 9%, DETERMINE W/C PROJECT IS MORE DESIRABLE. TIMBER BRIDGE STEEL BRIDGEFIRST COST P 50,000.00 P 140,000.00SALVAGE VALUE 2,000.00 10,000.00LIFE IN YEARS 12 36ANNUAL MAINTENANCE 6,000.00 2,500.00EVALUATE USING:A.) THE ANNUAL COST METHODB.) PRESENT WORTH COST METHODC.) RATE OF RETURN METHODPls 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.
- 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----Alternative 3 is incorrect EUAC=( Equivalent Annaul COst of Initial Investment)+ (Expected Moderate annaual flood damage cost )+ (expected severe annaual flood cost )Solve this problem in Excel. The following two alternatives are mutually exclusive. (a) Which one will you select if your MARR is 15% per year? Use rate of return analysis. (b) Graph interest rate vs. present value for both option 1 and 2. ( c) Discuss how your selection between option 1 and 2 will change when MARR is changed and at which interest rate the two options are the same economically. Alternative Initial Cost Annual Benefit Life, years Ordinary (O) $38,000 $9,400 5 Above average (AA) $35,000 $9,000 6
- Use Formula, not the table. Your company is environmentally conscious and is looking at two heating options for a new researchbuilding. What you know about each option is below, and your company will use an annual interest rate of 8%for this decision: Gas Heating Option: The initial equipment and installment of the natural gas system would cost $225,000 rightnow. The maintenance costs of the equipment are expected to be $2,000 per year, starting next year, for eachof the next 20 years. The energy cost is expected to be $5,000, starting next year, and is expected to rise by 5%per year for each of the next 20 years due to the price of natural gas increasing. Geothermal Heating Option: Because of green energy incentives provided by the government, the geothermalequipment and installation are expected to cost only $200,000 right now, which is cheaper than the gas lines.There would be no energy cost with geothermal, but because this is a relatively newer technology, themaintenance costs…ΔRoR for the first increment (Alt. C-Alt. A) is ___________________. Alt. A Alt. B Alt. C Initial cost $5,000 9,000 7,500 Annual benefits $1,457 2,518 2,133 RoR 14% 12.4% 13% Life in years 5 Group of answer choices 10.12% 11.00 11.85% 9.38%1.b 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. What is the ERR ( Ԑ=MARR) of this proposal? show whole solution, not in excel please
- DuPont claims that its synthetic composites will replace metals in the construction of future automobiles. “The fuel mileage will double,” saysDuPont. Suppose the lighter and stronger “composite automobile” will get 50 miles per gallon of gasoline, and that gasoline costs $3.50 per gallon. The anticipated life of the automobile is six years, i = 10% per year, and annual travel is 20,000 miles. The conventional car averages 25 miles per gallon. Solve, a. How much more expensive can the sticker price of the composite automobile be and still have it as an economical investment for a prospective auto buyer? State all important assumptions. b. What is the trade-off being made in Part (a)?A project is being planned that has an initial investment at time 0, annual revenuesand expenses, and a salvage value at the end of the project lifespan (20 years). The financialvalues are summarized below:Initial investment amount at time 0 $150,000Estimated annual revenue $34,500 per yearEstimated annual expenses $8,700 per yearEstimated salvage value at end of lifespan $10,000Minimum attractive rate of return (MARR) 15%a. Calculate the capital recovery amount CR(i%).b. Using the annual worth (AW) method, determine whether purchasing the equipmentis economically justified.c. Repeat part (a) using the internal rate of return (IRR) method based on annual worth(AW).d. Using the present worth (PW) method, determine the break-even time period afterwhich purchase of the equipment generates a profit. (Find N when PW = 0) year period.Ronald McDonald decides to install a fuel storage system for his farm that will save him anestimated 6.5 cents/gallon on his fuel cost. He uses an estimated 20,000 gallons/year on his farm.Initial cost of the system is $10,000 and the annual maintenance the first year is $25 and increasesby $25 each year thereafter. After a period of 10 years the estimated salvage is $3,000. If moneyis worth 12%, is it a wise investment?