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Choose the appropriate investment proposal/s

University Athletic Wear (UAW) is evaluating several new product proposals. Resources are available for any or all of the products . UAW uses a MARR of 15% and a time span of 5 years for project evaluations. Determine which new product(s) should be chosen using Internal rate of return criteria. MARR=15%

Capital Budgeting

AAAcme Company is preparing an investment plan and has received three proposals with investments and returns as shown below. Which one(s) should be approved using a discounted payback period of 3 years (meaning by the end of year 3). AAAcme uses a MARR of 12%. Cash Flow Year X

Third Degree Price Discrimination

What is third-degree price discrimination? What three conditions must be met for third-degree price discrimination to be feasible? Give examples of firms that use third-degree price discrimination.

Capital Budgeting Models..

A manufacturing firm is considering the mutually exclusive alternatives shown below. Determine which is a better choice at a MARR if 15% based on the IRR criterion. n Project A1 Project A2 0 $(2,500) $(3,600) 1 $1,600 $2,600 2 $1,840 $2,200

Massive Jobs Losses

Debate the American economy. If we are facing problems with jobs and cutting taxes, how will it work if they privatize Medicare and cap social spending?

Independence Of Risks And Insurance

Chapter 11 1. Why does the assumption of independence of risks matter in the example of insurance? What would happen to premiums if the probabilities of house burning were positively correlated? 14. Small firms can discover the abilities of their workers more quickly than large ones because they can observe the workers more

Outsource housekeeping practices

Do you think that Hyatt practiced SHRM in deciding to outsource housekeeping? Can you determine if it improved or hurt the bottom line? What would you have advised Hyatt management to do to remain competitive now and in the future? Text Hyatt Report When the housekeepers at the three Hyatt hotels in the Boston area we

Price monopoly and consumers

It is sometimes said that a manager of a monopoly can charge any price and customers will still have to buy the product. Do you agree or disagree? Why?

The theory and estimation of cost

The Central Publishing Company is about to publish its first textbook in managerial economics. It is now in the process of estimating costs. It expects to produce 10,000 copies during its first year. The following costs have been estimated to correspond to the expected copies. a.Paper Stock $8,000 b.Typesetting $15,000 c.Pr

Suppose the corporate income tax were eliminated and corporate income allocated to shareholders on a pro rata basis according to their proportion of outstanding stock. How would such a change in tax policy affect the excess burden and incidence of the tax, assuming that all forms of investment income are included in a comprehensive income tax base?

Suppose the corporate income tax were eliminated and corporate income allocated to shareholders on a pro rata basis according to their proportion of outstanding stock. How would such a change in tax policy affect the excess burden and incidence of the tax, assuming that all forms of investment income are included in a comprehens

Production Estimation

a. Discuss the problems of measuring productivity in actual work situations. b. How might productivity be measured for each of the following industries? i. Education (e.g., elementary and secondary education, higher education - undergraduate and graduate) ii. Government (e.g., the Social Security Office, the Internal Revenue

Genentech's Drug Avastin

As more potentially life-saving, but expensive drugs come to market, patients and insurance companies have difficult decisions to make. While in theory people would pay anything to save their own life or that of a family member, the efficacy of some of these drugs is uncertain and some are not curative. For example, Genentech's

Suppose the corporate income tax were eliminated and corporate income allocated to shareholders on a pro rata basis according to their proportion of outstanding stock. How would such a change in tax policy affect the excess burden and incidence of the tax, assuming that all forms of investment income are included in a comprehensive income tax base?

Suppose the corporate income tax were eliminated and corporate income allocated to shareholders on a pro rata basis according to their proportion of outstanding stock. How would such a change in tax policy affect the excess burden and incidence of the tax, assuming that all forms of investment income are included in a comprehens

Each of the following affect the supply for insurance

How will each of the following affect the supply for insurance? a. a larger pool of insured persons b. lower administration costs for insurance companies c. higher premiums (with no change in risk experience) d. a greater degree of risk aversion on the part of insurers

Elasticity is discussed.

a. Discuss your view of elasticity of gasoline based upon the changes we have experienced during the past few years. b. Why is the long run elasticity greater than the short run elasticity for gasoline? c. Under what economic situations will public transportation present potential competition to private automobiles?

Consider a society with two people. Rosa earns an income of $120,000 per year and Jake earns an income of $45,000 per year. The government is considering a redistribution plan that would impose a 23% tax on Rosa's income and give the revenue to Jake. This policy distorts Rosa's and Jake's incentives, such that instead Rosa retaining $92,400 and Jake ending up with $72,600, Rosa would have an income of $77,000, and Jake would have an income of $65,000 if this redistributive plan were implemented. Specifically, since Rosa will not receive the income she earns, she decides to work less and earn an income of only $100,000, of which $23,000 (23% of $100,000) will be owed in taxes. So Rosa will take home an income of $77,000. The $23,000 that Rosa pays in taxes will be transferred by the government to Jake. Since Jake now receives payment from the government, he will not work as many hours and will earn an income of $42,000 instead of his initial $45,000. So Jake total income, which includes his income from work and the government payment will be $42,000 + $23,000=$65,000. Without a redistribution plan, total income in this society is ___________. After the redistribution plan is implemented, total income in this society is___________. Therefore, the redistribution plan ______________total income in this society.

Consider a society with two people. Rosa earns an income of $120,000 per year and Jake earns an income of $45,000 per year. The government is considering a redistribution plan that would impose a 23% tax on Rosa's income and give the revenue to Jake. This policy distorts Rosa's and Jake's incentives, such that instead Rosa re

Economics questions

1. (Part A - You are considering an upgrade at a chip manufacturing plant. A new VLSI testing station costs $100,000, installed. It will save $50,000 per year in labor costs. Use five-year tax life and a tax rate of 40%. Find the rate of return (IRR). (Use two sig. figs.)) Part B- If the unit requires reprogramming calibratio

How much utility will the marginal dollar yield?

Advanced Analysis, let MUa=z=10-x and MUb=z=21-2y, where is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $ 10 to spend on A and B_that is , x+y=10. How is the $10.00 best allocated between A and B? How much utility will the

Net Present Value Method

1. - Colgate Distributing Company has the option to provide to its sales representatives a car or reimburse them the mileage for the use of its own cars. If the company provides the car, it will pay all the expenses related to it, including gas for business travels. The estimations are as follow: Car cost $15,000 Estimated Li

Assume the U.S. decides to implement a system of national

Assume the U.S. decides to implement a system of national health insurance that provides to all citizens a basic benefit package that covers most necessary services. Those who wish to purchase private insurance may do so, but they will not be covered by national insurance and will have to pay all their medical expenses. What do

State government leby tariffs on imports

Why not have State governments levy tariffs on imports, or tax other states' products. Would this be a sensible way to raise revenues? What are the advantages/disadvantages? Provide research to support positions. Brief with bullet points will suffice.

medical research and training

Who should pay the costs of medical research and the costs of training new physicians? Should these be paid by the government through Medicare and Medicaid? By government directly through tax dollars? By health insurers? Consider each and explain why you think it is appropriate or not.

Summarize the provisions of HSAs.

The Medicare Modernization Act of 2004 included a provision authorizing the establishment of health savings accounts or HSAs. Such accounts have been proposed in the past, both in this country as medical savings accounts (MSAs) and in other countries, as one mechanism to extend health insurance to those without it and to provide