Robinson Co. is interested in purchasing a new delivery vehicle so it can become a subcontractor with Amazon Logistics. The vehicle would cost $131,250 and generate delivery revenue of $35,000 for each of the next 6 years. If Robinson Co. purchases the vehicle, it will take a loan for $105,000. The terms of the loan stipulate that 4% annual interest would be charged and that the loan would be repaid in 6 equal end of year payments. At the end of the 6 years, the vehicle will have a salvage value of $5,000. The tax rate is 40%. Assuming that the vehicle is depreciated using MACRS (5-year property class) and that Robinson Co. uses an after-tax MARR of 10%, compute the PW and determine whether Robinson Co. should purchase the new business vehicle. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes.

14. Application: Demand elasticity and agriculture The following graph illustrates the market for walnuts. It plots the monthly supply of walnuts and the monthly demand for walnuts. Suppose an increase in pests destroys a major portion of walnut trees. Show the effect this shock has on the market for walnuts by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per ton) 40 32 8 0 8 16 I I 1 11 24 Supply Demand QUANTITY (Thousands of tons) 32 Total Revenue (Thousands of Dollars) 40 Demand D Supply ? One of the growers is pleased with the price increase caused by the pests because she believes it will lead to increased revenue. Using elasticities, you will be able to determine whether this price change will lead to a rise or fall in total revenue in this market. Using…

18. Microeconomics Imagine that we have found out the demand for a product for three individuals. Each individual's demand can be described by the demand functions:Q ^ A = 10 –2PQ ^ B = 10 –2PQ ^ C = 10 –2Pa) What is the total demand function if the product above is a private product? b) What is the total demand function if the product above is a collective product? c) If the total cost of the product is given by the function TC = 7.5Q, what is the optimal quantity if the product is a private product? d) If the total cost of the product is given by the function TC = 7.5Q, what is the optimal quantity if the product is a collective product? e) Briefly state what characterizes a collective commodity with a maximum of one sentence D only solve

The income effect is a.the change in demand due to changes in real income due to a price change of the goodb.the change in demand of both goods due to changes in real income due to a price change of the goodc.the change in income due to changes in the demand for the goodd.observable but only after all the purchases have been made.