Questions
Calculate the user cost of capital of a machine that costs $100,000 and depreciates at a...

Calculate the user cost of capital of a machine that costs $100,000 and depreciates at a rate of 25%, when the nominal interest rate is 4% and the expected inflation rate is 1%.

(a) $3000

(b) $25,000

(c) $28,000

(d) $29,000

In: Economics

Suppose that you are offered an investment at cost of 800. That investment will pay the...

Suppose that you are offered an investment at cost of 800. That investment will pay the following cash flows.

0. 1. 2. 3. 4. 5

0. 500. 400. 300. 200. 100

A) should you make the investment if the required rate of return is 12% per year? why? explain.

B) What is the internal rate of return of this cash flow stream? if you require a rate of return of 12% annually. Should you make the investment? Why? explain.

In: Finance

Cost of Competitive Firm In Vienna, there is a competitive market for the production of upright...

Cost of Competitive Firm

In Vienna, there is a competitive market for the production of upright pianos. David’s piano production firm can make at most six pianos per week.

Quantity

Fixed Cost ($)

Variable Cost ($)

Total Cost ($)

Marginal Cost ($)

0

2000

---

1

5000

2

2000

11000

3

18000

4

8000

5

37000

6

45000

Complete the four cost columns in the table above.

If the market price of pianos is $8000 this week, how many pianos should David’s firm produce to maximise profit?

What would David’s profit be this week? $

8 points   

In: Economics

Company A purchased a lathe on January 1, 2019, at a cost of $45,000. At the...

Company A purchased a lathe on January 1, 2019, at a cost of $45,000. At the time of purchase, the lathe was expected to have a five-year economic life and a residual value of $3,000. Company A uses straight-line depreciation. At the beginning of 2021, Company A estimated the lathe to have a remaining life of four years with no residual value. For the year ended December 31, 2021, Company A would report depreciation expense of: A. $6750 B. $7050 C. $7000 D. $7500 I'm looking for the answer and an explanation please. TYIA

In: Accounting

Describe Telemedicine. Does Telemedicine increase or decrease the cost of healthcare?

Describe Telemedicine. Does Telemedicine increase or decrease the cost of healthcare?

In: Nursing

The cost of gasoline in an area follows an unknown distribution with a mean of $3.79...

  1. The cost of gasoline in an area follows an unknown distribution with a mean of $3.79 and a standard deviation of $0.92. Suppose a random sample of 45 di↵erent gas prices is drawn over a 5 year period.

    a) What is the probability that the average price of gas there over those 5 years is less than $3.95?

    b) What is the probability that the average price of gas there over those 5 years is more than $4.00.

In: Statistics and Probability

The annual subscription to a magazine costs $50 and this cost is expected to increase by...

The annual subscription to a magazine costs $50 and this cost is expected to increase by 10 percent per year. A life subscription, on the other hand, costs $500. The relevant discount rate for analyzing this situation is 12 percent. In order to justify taking out a life subscription, what is your minimum life expectancy (approximately)

In: Finance

Discuss the concept behind NAFTA and how this reduces production cost.

Discuss the concept behind NAFTA and how this reduces production cost.

In: Economics

discuss the cost of adaptations and changes as well as the human element that will impact...

discuss the cost of adaptations and changes as well as the human element that will impact an EHR implementation in an agency. Discuss the usability satisfaction after implementation. Will cost impact future adoptions of health care databases.

subject: Healthcare in formation Technology

In: Nursing

The Golden Goose is considering a project with an initial cost of $46,700. The project will...

The Golden Goose is considering a project with an initial cost of $46,700. The project will produce cash inflows of $10,000 a year for the first two years and $12,000 a year for the following three years. What is the payback period?

In: Finance