You are selling your 1995 Honda Civic. You have already spent $1000 on repairs. At the last minute, the transmission dies. You can pay $500 to have it repaired, or sell the car "as is." In each of the following scenarios, should you have the transmission repaired? Explain. A. Blue book value (what you could get for the
What is the rate of return on an investment over it's economic life that costs $29,000 and has a $1000 salvage value after 7 years(straight line depreciation) if it can earn $6,000 before taxes annually? Assumes that you are in a 25% tax bracket.
1. Two computer systems are being compared. System A has a life expectancy of 5 years and will cost $14,000 plus $2,000 annually for maintenance. System B has life expectancy of 3 years and will cost $9,000 plus $700 annually for maintenance. System A will generate about $10,000 income and system B will generate about $9,000. Ea
1. You currently have a piece of equipment that is 2 years old and cost $13,000 when it was new. It has five years left on it's economic life and can be traded in for $8,000. It will have annual operating cost of $4,000. A new piece of equipment can be purchased for $18,000 and will have annual operating cost of $1,000. This new
OL 501: Business Foundations Corporate Report Analysis & Research Project Worksheet D; Module Topic 6; Due Week 7 Refer to the corporate report for the company you have selected, and the research and assignments you have already concluded, to complete the following tasks. 1. How many shares of the corporation's stock
Please see the attached document for the full questions and graphs/tables that are addressed in the solution.
The demand curve for tickets at an amusement park is: Q = D(p) = 1400 - 46p, p > 0 The marginal cost of serving a customer is $11. Using calculus and formulas (but no tables or spreadsheets) to find a solution, how many tickets will be sold at the profit-maximizing price? Round the equ
I would like to have the following sample problems solved in EXCEL format so that I can see the formula used. 1. TC = 17 + 2q2 Suppose the firm's output can be sold (in integer units) at $57 per unit. Using calculus and formulas (but no tables or spreadsheets) to find a solution, HOW MANY UNITS should the firm produce t
Suppose you have hired a new worker, unfortunately you do not know if the worker is a shirker or a hard worker. Suppose working hard raises the probability of making a sale from 40% to 80% (thus raises the probability of making a commission C by the same percentage). If the cost of working harder is $150,what commission C should
Suppose a firm in an oligopolistic industry faces the following demand curve: P = 4,800 - 0.4 Q for Q < 3,000 P = 20,000 - 2 Q for Q > 3,000 Suppose further its Cost function is as follows: TC = 1,000 + 100Q + 0.5 Q2 a. What price do you suppose they will charge in the short run? b. What do you suppose will happen in the l
Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.). Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the
Josephine makes $100 a day as a flower shop attendant. She takes off two days of work without pay to travel to another city to attend her sister's wedding. The cost of transportation for the trip is $180 round trip. The cost of her hotel stay is $99 per night and she stays for 2 nights. What is the opportunity cost of Josephine'
Use the table below to answer the following questions: Table Output Total Cost 0 $10 1 $20 2 $28 3 $38 4 $53 5 $73 6 $99 a. What are variable costs of producing 5 units? b. What is average total cost of producing 3 units? c. What is average fixed cost of producing 4 units? d. What is the marginal cost
Please help with the following problem: How would you propose a series of taxes or other revenue measures to address your state's financial crisis? Provide reasoning for your approach.
Provide an analysis of the economic/political causes of World War I. The response is 1000 words and includes references cited. It is a study guide that will help students to further research the topic.
The Production Function for Wilson Company Economists at the Wilson Company are interested in developing a production function for fertilizer plants. They collected data on 15 different plants that produce fertilizer (see the following page). Questions 1. Estimate the Cobb-Douglas production function Q= αL^β 1K_2^β, wh
I need a Financial Analysis on GE Oil&Gas. Identify internal strengths and weaknesses. For example, does GE have good or bad cash flow, liquidity, and debt position? How does that compare with their competitors? What capital & cash flow would be required for my strategy?
COST STRCTURE and PRICING: Sting Ray PoolVac, Inc. manufactures and sells a single product called the "Sting Ray," which is a patent-protected automatic cleaning device for swimming pools. PoolVac's Sting Ray faces its closest competitor, Howard Industries, also selling a competing pool cleaner. Using the last 26 quarters of p
Question: Assume that a firm is considering building a factory that will cost $5 million. It believes that it can get a profit from this factory of $600,000 per year for many years. The interest rate at which the firm can borrow money is 15 percent. After evaluating whether it should build the factory, the firm decides that it s
From the following data, calculate the Retained Earnings balance as of December 31, 2013: Retained earnings, December 31, 2014 ............................................................................... $ 245,200 Net decrease in total assets during 2014 ....................................................................
Select a company that uses or has used dynamic pricing, and respond to the following questions: 1. What is the definition of dynamic pricing? 2. How does the company you have chosen use dynamic pricing? 3. What are the benefits and drawbacks of dynamic pricing for that particular company? 4. Summarize your find
A state legislature has appropriated $15 million to purchase and prepare the property for several new state parks. Alternatives have been suggested and forecasts for acquisition, preparation and annual operating costs have been estimated and listed below for each alternative. Also listed are the forecasted annual benefits to the
Is it ethical for a government to act in ways that socialize financial risks or losses? Is it ethical to do so while privatizing gain/profits? Or to do so in ways that favor wealthier citizens while imposing risk on less wealthy taxpayers (or vice versa)? Or that create moral hazards? Why or why not? Are these social goals that
Scenario The board liked the analysis you did on valuation and agreed to proceed with the expansion plan. Your CFO, investment bankers, and consultants have all been working on the cost and benefits of various expansion options. They have agreed on an option that will see simultaneous expansion into five domestic markets (Chi
Solutions are provided for questions given below. See the attached file. Using benefit-cost ratio analysis, determine which one of the three mutually exclusive alternatives should be selected. Each alternative has a 6-year useful life. Assume a 10% MARR. A
Imagine you are conducting a cost-benefit analysis. How do you plan to use this when making decisions about public expenditures? Is it necessary in the decision-making process? Explain why or why not.
What types of decisions would need to be made before the investment is made, and what are the main kinds of information/data needed in order to evaluate a capital investment project?
Suppose a firm faces the total benefit function: B(Q) = 18Q - Q^2 and the total cost function: C(Q) = 2 - 2Q +Q^2 a. What quantity should the firm select? b. What is the amount of total benefits, total costs and total net benefits at the selected quantity? c. If the first term in the cost equation changed from 2 to 5
Jet Blue Airlines has determined that the price elasticity of demand for two customer segments (Coach and Business Class) is -1.35 and -2.50. Based on their expectations of profitability, Jet Blue realizes the price of a Coach seat should be $175 (one way). How much should Jet Blue charge for a Business Class ticket?
1.) Rational Choice theorists argue that would-be criminals make the decision to commit crimes based on a cost-benefit analysis. Do you agree with this school of thought? Why? 2.) Assuming that you agree with the thinking of rational theorists, what cost-benefit factors would an individual contemplating the following crimes c