A city government is considering increasing the capacity of the current waste water treatment plant. The estimated financial data for the project is as follows: Description Data Data Capital Investment, P 1,200,000 Description Salvage Value, P Discount Rate, % 50,000 Incremental Annual 250,000 6 Benefits, P Incremental Annual 110,000 Project Life, years 25 Cost, P What would be the net benefit cost ratio (conventional) for this expansion project?

Vinnie’s Painting Company specializes in painting houses. Their cost schedule is as follows: 1. Show to calculate for the table below Output TFC TVC TC AFC AVC ATC MC 0     1000         1   100           2             100 3   400           4           450   5   1600           6   3200           7   6400           a) Given the partial data available, finish the table and calculate all the costs. b) What is the minimum efficient scale of Vinnie’s company? c) What is the marginal cost of 6 houses? d) If Vinnie charges $825 per house, how many houses he should paint to maximize profits?

2b statements is true or false and explain If marginal cost is larger than average cost, average cost will fall as output increases.

f production, C be the total cost, MC be the marginal cost, AFC, the average fixed cost, AVC, the aver ecimal places.) Output (q) VC C MC AFC AVC AC 1 $100 $64 112 $164 $64 48 $100.00 $64.00 $164.00 50.00 56 00 106.00 2 100 212 3. 100 144 244 32 33.33 48.00 4. 100 160 16 25.00 40.00 65.00 100 192 292 -32 20.00 58 40 9. 100 340 48 16.67 40.00 56.67 7. 100 -304 404 14.29 4343 57.71 100 -384 484 80 48.00 60.50 53.33 59.20 9. 100 480 580 96 11.11 64.44 10 100 592 112 10.00 F.