4.27.23MIST 2090 Final Exam Review

Four consumers are willing to pay these amounts for haircuts, and four haircutting businesses have these costs: Consumers' Willingness to Pay Firms' Costs Edison: $45 Firm A: $40 Kevin: $25 Firm B: $20 Maria: $15 Hilary: $35 Firm C: $10 Firm D: $30 Each firm has the capacity to produce only one haircut. For efficiency, should be given. Which businesses should cut hair? Check all that apply. Firm A Firm B Firm C Firm D Which consumers should have their hair cut? Check all that apply. Edison Hilary Kevin Maria The maximum possible total surplus is $

Consider the following two mutually exclusive projects being considered by an agency. The agency's MARR is 4% per year and the projects have a service life of 5 years. Answer the following questions. Initial cost Annual revenues Present Worth (PW) Project 1 $14,600 $3,901 $2,767 Project 2 $22,100 $5,638 a. Based on the PW, the project that is more economical is Project b. Calculate the IRR of each alternative (use the trial-and-error method) % (Round to the nearest one decimal place) The IRR of Project 1 is The IRR of Project 2 is % (Round to the nearest one decimal place) $2,999 (Enter the project number). c. Perform the incremental IRR analysis to determine the project that is more economical: Incremental IRR =% (Round to the nearest one decimal place); Therefore, based on the incremental IRR, Project is more economical. d. Do the two methods produce the same recomendation for the most economical project?

Mona Persian is considering a new investment fund with a semiannual interest rate of 2.5%. Any money she invests would have to be left in it for at least five years if she wanted to withdraw it without a penalty. (a) What is the nominal interest rate? (b) What is the annual effective interest rate? (c) If Mona deposits $10,000 in the fund now, how much should it be worth in five years?

A breeder has sold kittens and puppies on his shop. An income of $17,160 was made from a transaction where 60 kittens and 240 puppies were bought. Another transaction where 40 kittens and 180 puppies were made resulting to an income of $12,240. Determine the following: The price for each kind of animals. Explain the concepts/principles that were considered and the factors that affected the condition of the above mentioned item (a).

Create me a cash flow diagram based on the table provided.The pattern need to follow : Figure 5.9: Simplified cash flow diagram for the project starting from initial development until the first month of profit.

Assume that wind turbines are designed such that irreparable damage should occur only during local storms, which occur, on average, once per hundred years. Calculate the annual insurance fee, $/year, in constant dollars for a unit having an initial cost of $300,000 if the worldwide insurance investment pool for wind farms earns a net real inflation-free rate of return of 5%/year compounded continuously.

Suppose that a $100 lump sum amount is invested for 10 years at a nominal interest rate of 6% compounded quarterly. How much is it worth at the end of tenth year?

Problem 2.3 The following problem can be solved using the generalized conservation and accounting principle to determine if a recycling plant is profitable annually. Operating information: ● ● The plant operates 9 hours each day, 5 days each week, and 48 weeks each year. The plant purchases 30 tons of aluminum (at a rate of $0.02/lb) during each operating week. The plant has 5 full-time employees who are paid $18 per hour. All employees work during all of the plant's operating hours. The plant produces 7 bales of recycled aluminum per day, which it sells for $950 per bale. [Note: 1 ton = 2000 lb] Answer the following questions: (c) In order to determine the plant's annual profitability, would one be interested in studying the instantaneous rate of change in "stuff" (i.e. rate form) or the total change in "stuff" over an interval (i.e. finite-time form)? (d) On a system diagram (hint: think dashed lines!), use labeled arrows to identify each individual input and output of "stuff". (e)…

Problem 2.3 The following problem can be solved using the generalized conservation and accounting principle to determine if a recycling plant is profitable annually. Operating information: ● ● The plant operates 9 hours each day, 5 days each week, and 48 weeks each year. The plant purchases 30 tons of aluminum (at a rate of $0.02/lb) during each operating week. The plant has 5 full-time employees who are paid $18 per hour. All employees work during all of the plant's operating hours. The plant produces 7 bales of recycled aluminum per day, which it sells for $950 per bale. [Note: 1 ton = 2000 lb] Answer the following questions: (a) Identify the system (in words). (b) Identify the "stuff" you are accounting for in this analysis. (c) In order to determine the plant's annual profitability, would one be interested in studying the instantaneous rate of change in "stuff" (i.e. rate form) or the total change in "stuff" over an interval (i.e. finite-time form)? (d) On a system diagram (hint:…