7. Compare the alternatives shown below on the basis of a future worth analysis, using an interest rate of 8% per year. First cost. S Annual operating cost. $ per year Salvage value, $ Life, years P -23.000 -4,000 3,000 3 Q -30,000 -2.500 1,000 6

Out of 10000 people in a community, each is willing to pay Ksh 10 for each well dug. The cost of digging the wall is is given by C= Q2+20Q.  Calculate the pareto efficiecy number of wells to be dug. If the government want to dug the well at a minimal cost, how many walls will it dig and how much will it spen if the projet is given to a private, profit making organization, how many well would the firm dig?

The travel time (t) on the segment of a highway connecting city A with city Bhas been observed to follow the equation below, as a function of traffic flow(v): t = 15 + 0.02v, where t and v are measured in minutes and vehicles perhour, respectively. The demand function for travel connecting the two cities isv = 3500 – 120t.a) Determine the equilibrium time and traffic flow.b) If the length of the highway segment is 30 kilometres, what is the averagespeed of vehicles traversing this segment at equilibrium conditions?

What factors into the opportunity cost for a decision? Select a Benefits from the best foregone alternative Actual financial cost of the decision Time spent due to the decision The sum of all benefits from all foregone alternatives The difference between the benefits of the first and second best choices