2. In the design of a new facility, the mutually exclusive alternatives in the table below are under consideration. Assume that the interest rate (MARR) is 15% per year and the analysis period is 10 years. Use the AW method to choose the best of these three design alternatives Capital investment Annual revenue less expenses Market value Useful life (years) Design 1 -$28,000 5,500 1,500 10 Design 2 -$16,000 3,300 0 10 Design 3 -$23,500 4,800 500 10
Q: Consider the market for different Apartments. Use the chart below to answer the following questions.…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 5. Which of the following contracts would be governed by the Uniform Commercial Code? a. A contract…
A: The Uniform commercial Code (UCC) is a set of legal guidelines that governs business transactions…
Q: True Or False Q2: Potential GDP can be increased with monetary policies of changing interest…
A: Monetary policies are adopted by central bank to control the availability of money and employ…
Q: Cumulative Dynamic Multiplier: @LOG(ER) on @LOG(KLCI) Shock Evolution 5
A: The importance of the time lag between the two macroeconomic variables, initial investment, and its…
Q: The following diagram shows the market demand for copper. Use the orange points (square symbol) to…
A: In a perfectly competitive market, supply curve is the same as the marginal cost curve of the firm…
Q: 1. You purchased a building five years ago for $100,000. Its annual maintenance expense has been…
A: The AW method offers a prime computational and interpretation advantage because the AW value…
Q: = 4. Calculate the present equivalent at i 15% per year using arithmetic gradient interest factors…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Price Level (base year-100) 882 SRAS, URAS, URAS, IRAS, SRAS, SRAS (C AD₂ AD, AD,
A: Notice that E (equilibrium) keeps shifting right as Aggregate Demand and Aggregate Supply shift.…
Q: To purchase $14,700 worth of machinery for her business, Ivanna made a down payment of $1700 and…
A: A sort of funding called a business loan is given to companies or entrepreneurs to help with…
Q: QUESTION 7 Consider a market with two differentiated goods. Demand for good 1 is given by D₁ =…
A: The term "substitute goods" refers to commodities or services that can be used in lieu of one…
Q: What is the net gain in consumer surplus if demand is D₁? The net gain for D, is $ What is the net…
A: Price ceiling is the maximum price for which the commodity can be sold in the market or can be…
Q: Q Lawns TVC 0 50 2 100 4 300 6 500 8 1100 10 1800 12 2900 A perfectly competitive firm is mowing…
A: A perfectly competitive firm is one of many identical firms producing homogeneous goods. Each firm…
Q: Explain, using supply and demand analysis, why the price of crude oil has been increasing recently.…
A: In economics the market system is governed by two forces demand and supply. Demand is defined as the…
Q: Draw the demand, marginal costs and revenue on the same graph and show the consumer surplus,…
A:
Q: Consider a government which collects tax on wages received by workers to provide public goods. This…
A: Taxation is a crucial tool that governments use to generate revenue for public goods and services.…
Q: Hey, need help with the following multi-part macroeconomics problem. Thank you in Advance! Many…
A: Introduction: The real interest rate is the nominal interest rate minus the rate of inflation. It…
Q: Could I have this answered using the updated Phillips curve model, that is, using inflation instead…
A: The Philips Curve is a macroeconomic concept that shows the inverse relationship between…
Q: How would you describe the processes characterized as the "starve-then-sell strategy" being used to…
A: The "starve-then-sell" strategy is a political and economic approach that is characterized by…
Q: a. b. C. PRICE d. 126 84 72 40 30 8. Refer to Figure above. A benevolent social planner would prefer…
A: In economics, supply means to the total amount of a specific good or service that producers are…
Q: Let us now turn to the decisions that the governments would make if they were inde- pendently…
A: The model presented in the problem describes a situation in which two countries, the US and Fiji,…
Q: QUESTION 4 We use the Cournot model of quantity competition in industries where capacity constraints…
A: According to the economic theory of Cournot competition, competing enterprises select a production…
Q: solve for IRR: (P/A, IRR, 20) = -1.062
A: IRR stands for Internal Rate of Return. It is a financial metric used to estimate the profitability…
Q: A monopolist sells the same good in two geographically separated markets, market 1 and market 2. The…
A: In a monopoly market structure, There exists a single seller. The firm will produce where the…
Q: Daniel can spend no more than $40 at the fair. If admission into the fair is $10 and the rides cost…
A: Inequalities and equations are mathematical sentences formed to relate two expressions or variables…
Q: The price of crude oil increased to its highest level due to conditions which impacted supply.…
A: OPEC (Organization of the Petroleum Exporting Countries) is an international organization that was…
Q: In a perfectly competitive market, if market supply increases, price Question 15 options: decreases…
A: The equilibrium occurs where the demand and supply forces are equal. The Single firm or buyer can…
Q: Sam is in equilibrium and is spending his income where the marginal utility of shoes is 20 units and…
A: A rational consumer seeks to maximize the utility or satisfaction received in spending his or her…
Q: ed Quiz 4 i 49 MC Qu. 14-253 (Algo) Answer the question based... Firm A's Strategies International A…
A: A dominant strategy in economics is a course of action that is the best response for a player…
Q: (a) On the same axes, sketch Alice's budget set and some contours u₁(x, y) = c for positive values…
A: Utility is the satisfaction or value that a consumer derives from consuming a good or service. It is…
Q: Consider the perfectly competitive market for dress shirts. The following graph shows the marginal…
A: Shutdown Price: In perfect competition, the shutdown price is that point where the firms denied to…
Q: Consider the OLS estimator 3;. Under the Gauss-Markov assumptions, O the estimator is the best…
A: The Ordinary Least Squares (OLS) estimator does have the least sampling variance among the class of…
Q: Frank Smith is considering purchasing a new car. The price of the car is $28000, and Frank hopes to…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: PRICE 63 36 24 15 240 QUANTITY 420 Supply Social Value Demand Refer to Figure 10-5. The socially…
A: The socially optimal quantity refers to the level of production or consumption of a good or service…
Q: Chatham Automotive [should/should not] replace the forklifts now since the minimum total EAC for the…
A: Given, For electric forklifts: Cost=$65,000 Salvage Value=$10,000 Operating Cost=$20,000 Increase…
Q: Classify each of the following scenarios listed in the table below using the macroeconomic…
A: Investment is the purchase of assets and goods that facilitate the production of new goods and…
Q: The price of crude oil increased to its highest level due to conditions which impacted supply.…
A: Factors affecting demand and supply are the various factors that influence the quantity of a good or…
Q: The realization that only a small portion of criminals commit the majority of crimes suggests that,…
A: The additional expense incurred by creating one extra unit of output is known as marginal cost (MC).…
Q: industry has the following total cost schedule: Calculate a marginal cost and an average cost…
A: There are many consumers and sellers in a market system known as perfect competition. Both the…
Q: Consider the table below price level 90 100 110 120 130 140 YAS 750 1000 825 900 900 800 975 700…
A: The price level and GDP, both are equilibrium at the point when aggregate demand equals to aggregate…
Q: AUAB graduate donates $500,000 to the School of Engineering to fund student scholarships…
A: A UAB graduate donates $500,000 to the School of Engineering to fund student scholarships…
Q: Analyze what should be the optimal monetary policy in the UK in the short and medium run and an how…
A: Introduction The economy of the United Kingdom (UK) has been affected by a range of factors in…
Q: (4) w = 3. firm's production function is F(K, L) = 2√/K + L. Factor prices are r = 2 and (a) Find an…
A: The marginal product of labor represents the increase in output as a result of an increase in labor…
Q: O a. $1,250 b. $2,500 c. $625 d. $5,000 C.FS F5 PRICE F6 300 F7 250 200 150 100 50 25 F8 50 Refer to…
A: The larger the producer surplus, the greater the incentive for producers to continue supplying goods…
Q: 5) Find the present worth at i=10% per year for the cash flow shown below. $4,000 0 1 $3,000 2 3 4 5…
A: Cash flow refers to the movement of money into or out of a business or individual's financial…
Q: Anderson is facing the hardest decision in his life: Should he buy the newest Xbox Series X (cost…
A: The cost or price of the next best option accessible to a business, organisation, or investor is…
Q: Figure 7-1 Price $50 24 18 10 0 10 $300; $285 15 $195; $105 20 $260; $40 $555; $105 U.S. Supply…
A: Equilibrium is where the demand curve intersects the supply curve. Consumer surplus is the area…
Q: What is perfect competition? a. All of the other choices for this question (except for None of the…
A: The market is where buyers and sellers are together for involving in the exchange of goods and…
Q: 05. Solve the following game. Player A 1 0 5 7 3 2 Player B 276 2 7 6 4 8 10
A: The Maximin and Minimax rules are used to solve the game. The one player in row seeks to maximize…
Q: A firm borrows $2000 for 6 yr at 8%, to be repaid in a lump sum at the end of 6 yr. At the end of 6…
A: The term present worth (PW) formula implies the application of the time value of money that…
Q: following characteristics: Initial cost Fixed cost (per year)= Life of project (years) = Salvage…
A: Salvage value is the computer value of an asset at the end of its useful life. It shows the amount…
Step by step
Solved in 3 steps
- 2. You are presented with three investment possibilities; however, you only have enough money to invest in one (the opportunities are mutually exclusive). The MARR is 5%,. Which one should be chosen? Make a decision based on an incremental rate of return analysis. A B Initial Cost Annual Benefit $ Salvage ValueS Life (yrs) $ (100,000) $ (150,000) S (210,000) 45,000 $ 35,000 $ 6. 50,000 $ 10,000 S 27,000 40,000 6| 8% ROR 12% 11%3) A and B are mutually exclusive projects.. What MARR has to be for A to be chosen? A B Initial cost Useful life Annual benefit Salvage value Rate of return $30,000 6 years $8,577 $0 18%lyr $50,000 6 years $8,577 $29,098 12%/yr a) MARR<8.4% b) MARR< 6.4% c) 8.4%The five mutually exclusive alternatives shown below are under consideration for improving visitor safety and access to additional areas of a national park. If all alternatives are considered to last indefinitely, determine which should be selected on the basis of a rate of return analysis using an interest rate of 10%. A B C D E_ First cost, $ millions -20 -40 -35 -90 -70 Annual M&O cost, $ millions -2 -1.5 -1.9 -1.1 -1.3 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.a. The PW of the Gas Heating Option is b. The PW of the Geothermal Heating Option is c. The lower cost alternative is the geothermal heating optionQuestion 4 Which increment should be examined first in incremental rate of return analysis, if MARR = 9.0%? Do-nothing A First cost Annual benefit Life ROR A-B O A-C O B-C OB-A 0 0 10 yrs $5,500 895 10.0% B C $3,000 $7,000 531 1,164 12.0% 10.5% D $3,000 408 6.0%Some particulars for a project are as follows. Initial Capital Cost in year 0 ($Mn) Follow-up 'one-off' cost in year 1 ($Mn) Annual Operating Cost ($Mn/yr) Annual Benefits ($Mn/yr) Project Closure Cost, at end of project life ($Mn) Useful Life (years) Interest/Discount rate (percent) Correct Answers 1000 300 10% of capital cost 400 9,254 (with margin: 5) 200 20 7 What is the Life Cycle Cost of the project - expressed in future value term? (your answer must be rounded off to the nearest million dollars, i.e., no decimal places)Need answe for Part D and ETRUE OR FALSE For any economy study based on our discussions, it is always necessary to determine the profit to evaluate thebetter/best alternative. If simple interest is evaluated, then the interest obtained will always be directly proportional to the number of yearsassuming that a constant interest rate is used throughout these years.Suppose you are offered two options: (i) receive Taka 30,000 at the end of 5 years or (ii) receive Taka P today and another Taka P 2 year later. When you invest the P Taka in ecommerce it pays around 8% profit yearly. What value of P would be same as promise of Taka 30,000 after 5 years? Assume there is no risk in this future payment.What is the best alternative using incremental Analysis? Use MARR = 15% A B C Capital Investment $ 2,000 7,000 4,200 Annual Revenues 3,200 8,000 6,000 Аппиal 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-CSolve by incremental cashflow then PW = 0. To get the value of i by interpolation. Problem 3: Two plans for a hydroelectric project in Peru have been proposed. The opportunity cost, in soles, of resources is 10 percent. Data on the two alternatives are: System First cost ($/,000,000,000) 300 160 Economic life (years) 40 20 Salvage value ($/,000,000,000) 15 12 Annual benefits (S/.000,000,000) 25 22 Annual costs ($/,000,000,000) 3 1 Using the internal rate of return method, which of the two systems should be chosen or should either be selected?6) Data for 2 alternatives are given below. If i = 10%, determine the cost of alternative A so that the 2 altematives will be equally desirable using ВС ratio. Alternatives A B Cost X P3,200 Salvage Value 900 600 Annual Benefit 1150720 Life (years) 8 8SEE MORE QUESTIONS