Consider the 2 cash flow options below at an interest rate of 10%
A | B | |
Initial Cost | 100,000 | 120,000 |
Year Cost 1 | 1000 | 1500 |
Year Cost 2 | 1400 | 1800 |
Year Cost 3 | 1800 | 2100 |
Year Cost 4 | 2200 | 2400 |
Year Cost 5 | 2600 | 2700 |
Year Cost 6 | 3000 | 3000 |
Year Cost 7 | 3400 | 3300 |
Year Cost 8 | 3800 | 3600 |
Year Cost 9 | 4200 | 3900 |
Year Cost 10 | 4600 | 4200 |
Year Cost 11 | 5000 | 4500 |
Year Cost 12 | 5400 | 4800 |
Year Cost 13 | 5800 | 5100 |
Year Cost 14 | 6200 | 5400 |
Year Cost 15 | 6600 | 5700 |
Option A stops at 15 years, while option B goes until year 30. The final year of option B is equal to 10200.
Yearly savings for option A is 10000 and for option B is 20000.
The salvage value for option A is 5000 and for option B is 12000.
Which option is better?
In: Economics
For the question below, write an explanation of the short-run effect including the determinant of AD or AS that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right), and the impact on output and price level (increase or decrease) and submit a properly drawn and labeled aggregate demand and aggregate supply graph for the scenario. Make sure your name and assignment number are written on each page of graphs you submit. All text must be written in the text box provided. Tourists flock to visit the major theme park's in Orlando, Florida.
Please explain and draw graph
In: Economics
Tortious Interference with a Contract
A tortious interference with a contract happens when a person who is not a party to a contract somehow influences one of the contract parties to breach the contract. This only applies where there is a written contract between two or more parties. Consider the following example of tortious interference with a contract:
Moonshine Coffeehouse Inc. and Aromatic Farms have a longstanding exclusive contract for the production and delivery of their “triple A” moonshine infused coffee beans.
Their contract calls for the delivery of all beans produced domestic and foreign on Aromatic Farm’s to Moonshines distribution warehouses for processing and redelivery to Moonshines Coffeehouses. The parties agree that the price per pallet will be $3000 with guarantee of 4000 pallet minimum.
MJGreen House, Inc. a competitor of Aromatic approaches Moonshine and informs them that Aromatic is undercutting Moonshine by withholding 10% of their worldwide farm production for sale to its competitor coffeehouse Star Tracks Inc. for $2000 per pallet.
Moonshine Coffeehouse Inc. as a result of this information cancels the contract with Aromatic refusing to purchase any further pallets from Aromatic unless Aromatic provides the entire farm yield as agreed.
Would Aromatic have the standing to sue MJGreen House, Inc. for tortious interference with contract because MJGreen’s actions made Moonshine decide to breach the contract? YES, Because MJ Green knew about Aromatic Farms contract with moonshine coffee house and chose to expose aromatics dealings with Star Tracks.
What would Aromatic have to prove to be able to hold MJGreen liable for tortious interference with the contract?
In: Economics
In: Economics
Suppose Canada imposes high tariffs on Japanese automobiles. The intention is to make autos produced in Japan so expensive for Canadians to buy that they choose instead to purchase autos constructed in Canada. Advocates of the policy contend this will create new employment in Canada. Assuming the Bank of Canada maintains a flexible exchange rate, will this trade policy prove effective? Explain thoroughly. What if the Bank of Canada maintains a fixed exchange rate, how would be your answer? Explain thoroughly.
In: Economics
Why do competing firms often locate their stores in close proximity to each other? For example, gas stations always built right next to other gas stations. Fast food chains, grocery stores, coffee shops, and restaurants always seem to exist in groups instead of being spread evenly throughout a community.
CAN YOU PLEASE MAKE THE ANSWER AT LEAST 100 WORDS.
In: Economics
5. (5 pts) Conduct a present worth analysis on a new piece of vision computer technology is being proposed to increase the productivity of your physical therapy facility. Your investment cost is $35,000, and the technology will have a market value of $5,000 at the end of 5 years. Your benefits are $11,000 per year with the purchase of the new vision computer technology. There is an annual subscription fee of $1,000. If your MARR is 15% per year, is this proposal a sound one? (Show work to validate your decision)
In: Economics
A monopolist has two segmented markets with demand curves given by
P1 = 160- Q1 and P2 = 130 - 0.5Q2
where p1 and p2 are the prices charged in each market segment, and Q1 and Q2 are the quantities sold. Its cost function is given by c(Q) = 2Q2, where Q = Q1 + Q2.
a. What type of price discrimination does this entail?
b. Find the monopolist's profit-maximizing price and quantity for each segment.
c. What is the relative price markup for each segment?
d. Find the profit for the monopoly.
e. Find the elasticity of demand for both demand functions.
f. From b, which segment should be charged a higher price?
In: Economics
Explain the problems with exchange rate controls
In: Economics
Explain and evaluate the validity of the military self-sufficiency argument for trade protection.
In: Economics
In: Economics
In: Economics
Briefly explain what is meant by the term "externality" and how it occurs.
In: Economics
In: Economics
I am having difficulties with figuring out the formulas for this
this question. Is there a walk-through for this?
You are the manager of a monopoly that sells a product to two
groups of consumers in different parts of the country. Group 1’s
elasticity of demand is -2, while group 2’s is -3. Your marginal
cost of producing the product is $30.
a. You are a monopolist.
b. You compete against one other firm in a Cournot oligopoly.
c. You compete against 19 other firms in a Cournot oligopoly.
In: Economics