A company decided to choose between two projects based on the shorter discounted payback period at an interest rate of i=10%. Both projects will have a service life of 6 years. Project A needs an initial investment of $20,000 and will generate a net cash flow in years 1 through 6 of $6,500. Project B needs $17,500 to invest initially, and will have a variable net cash flow as follows: $1,500 in year 1, $3,000 in year 2, $4,500 in year 3, $5,000 in year 4, and $7,000 each in years 5 and 6.Which project will the company choose and what is its discounted payback period?
In: Economics
Q1.You plan to set up a company, so construct a WBS for the project
Q2. Explain the role of “ map of interdependencies ” in the WBS
Q3. Give several examples of a type of project that would benefit from a template project action plan being developed.
In: Economics
1. Firm A and Firm B make identical products. Industry demand is Q = 90 - P. Both firms have a constant marginal cost of $30. There are no capacity constraints. a) Solve for the equilibrium price and quantity produced under Bertrand-Price model of competition. How much profits would they make? ii) Cournot-Quantity model of competition. How much profits would they make? b) Suppose that firm A is considering whether to invest in research and development that would lower its marginal cost to $15. How much would firm A be willing to pay for this research assuming 1) Cournot-Quantity model of competition 11) Bertrand-Price model of competition. Hint: solve for the equilibrium when A has a MC =15$ and B has a MC of $30 and compare the profits that you have found in part a) where they both had MC of $30 c) Now assume that Firm A has a capacity constraint of 30 units of production and Firm B has a capacity constraint of 20 units. In a Bertrand-Price competition model would the Bertrand - paradox hold? What would be the equilibrium price? How much profits would the firms earn?
In: Economics
Suppose that output Q is produced with the production function Q
= f(K,L), where K is the number of machines used, and L the number
of workers used. Assuming that the price of output p and the wage w
and rental rate of capital r are all constant, what would the profit
maximizing rules be for the hiring of L and K?
(b) What is the MRTSK,L for the following production function: Q =
10K4L2? Is this technology CRS, IRS or DRS? How do you know?
(c) If the production function was Q = 4KL1/2, what are the
conditional demand functions for K and L? Find the cost function
C(w,r,Q) for the production function in part (a). Show 3 general
properties of cost functions hold for this cost function. (d)
Suppose you know the cost function is C(w,r,Q) = 2wQ + rQ 2 . Can
you determine the returns-to-scale of the technology? If so, what
is it?
In: Economics
In: Economics
What explains the expansion of government in the post-World War II period and elaborate on the roles that governments perform in the economy.
In: Economics
You are asked to make your own list of the best places to live (it can be one, two, or more) and convince your reader to move there. Build your case by using as many economic indicators you think of How important would the country's per capita real GDP be as a criterion? What other factors in your own view would you consider?
In: Economics
You intend to maintain your e-commerce company's information security services in-house. What operations are these? What skills does your security team need to have? How can you tell that doing this is better than outsourcing?
In: Economics
Consider an individual making choices over two goods, x and y
with prices px and py, with income I , and the utility function
u(x,y) = xy1/2.You already know that this yields the demand
functions x∗ = 2I 3px and y∗ = I 3py (no need to calculate).
(a) Find the indirect utility function, expenditure function and
the compensated (Hicksian) demands for x and y. Show your
work.
(b) Use your expenditure function to find the compensating variation
for a price increase from $2 to $3 for good x, given income I = 60,
and py = 1.
(c) Use your answer from part (a) to determine which of these
options is best for this consumer: (i) px = 1, py = 3, I = 100;
(ii) px = 2, py = 2, I = 90;(iii) px = 3, py = 1, I = 120; (iv) px
= 2, py = 1, I = 110.
1
In: Economics
Describe an alternative pricing mechanism that exists within the healthcare industry or by a specific healthcare firm that deviates from the traditional market equilibrium pricing process (i.e. price discrimination, price leadership models, cost-plus pricing, incremental pricing, multiproduct pricing, transfer pricing, price skimming, prestige pricing, penetration pricing, predatory pricing, prestige pricing or psychological pricing). What type of market conditions exist that allows the unorthodox pricing procedure to exist?
In: Economics
Some factory equipment was bought at a cost of $100,000. The O&M costs for the first year were $10,000 and they are expected to increase by $2,500 per year thereafter. The market value of the equipment declines by 15% per year over its 5-year life. What is the minimum cost life for this equipment? Assume MARR = 4%.
Group of answer choices
5 years
3 years
2 years
4 years
In: Economics
Give an example of a policy used to correct an economic fluctuation. Also, explain the impact of the policy.
In: Economics
A permanent scholarship fund is started through a donation of $75,000 today and 50,000 four years from now. If scholarships totalling $20,000 are awarded each year beginning seven years from now, the rate of return for the invested money is nearest to:
Group of answer choices
8%
12%
10%
6%
In: Economics
Give a detailed explanation about what is happening with the oil prices.
mention coronavirus, OPEC, Saudi Arabia.
give references
In: Economics
Assume that a labour strike ends and that the union is successful in negotiating a substantial raise in pay for its workers. Concerns are raised about the motivation of the union and the possible negative employment consequences of the expensive labour contract.
In: Economics