Marco has an asset valued $100 now. There is a20% depreciation rate. Landing the asset ispossible, at 10% rate of return. See thefollowing Figure:Temps restant 0:25:53Consumption later ($)39261108000FF (store grain; 20% losses)FF (lend at 10%)Marco's IC (medium utility)65 68Consumption now ($)MRS MRTMarco's IC (low utility)Marco's endowment100Say if the following statements are correct.Veuillez choisir au moins une réponse.a. By doing nothing, Marco can consume$68 now, and $80 laterO b. By lending $65, Marco can consume

Correct: By doing nothing, Marco can consume $68 now and $80 later. However, the statement about…

Answered: Marco has an asset valued $100 now.…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An auto company purchase a new truck for their transportations at a price of $350,000. The company expects to use the truck years. expected salvage value of the truc k is $50,000 after the end of its tenth years of useful life. Use the SOYD method of depreciation to calculate the By of the truck after 2 year? A: $54,545 B: $246,394 C: $249,091 D: $103,636
e quanty or capital per e, an increase in the depreciation rate will the curve (n+d)k, and will n, szt (k). Therefore, quantity of capital id output per worker will epreciation rate will make it to bu current savings to keep not affect cause a movement down shift to the right cause a movement up shift to the left
Store Local Department Store Across Town Neighboring City Travel Time Each Way (Minutes) 15 30 60 Juanita makes $16 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Store Local Department Store Across Town Price of a Skirt (Dollars per skirt) 103 87 64 Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Opportunity Cost of Time (Dollars) Neighboring City Price of a Skirt (Dollars per skirt) 103 87 64 Total Cost (Dollars) Assume that Juanita takes opportunity costs and the price of the skirt into consideration when she shops. Juanita will minimize the cost of the skirt if she buys it from the…
The depreciation schedule for certain equipment has been arrived at by various methods. The estimated salvage value of the equipment at the end of its 7 years useful life is $366. Identify the resulting depreciation schedules. YEAR I || 1 2 3 4 5 6 7 IV $1335 2336.25 2775 3632 $1335 2002.5 1982 2273 $1335 1668.75 1416 1423 $1335 1335 1011 891 $1335 1001.25 722 558 $1335 667.5 515 349 $1335 333.75 368 219 Which scheme represents DDB depreciation and how much is the first year depreciation? a. III, $2775 O b. 1, $1335 O c. IV, $3632 O d. II, $2336
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ASB is considering leasing a new machine. The lease calls for 9 payments of $1,022 per year with the first payment occurring immediately. The machine costs $8,228 to buy. The present value of CCA tax shield is $910. The present value of its salvage value is $488 and the present value of CCA recapture is $92. ASB firm can borrow at a rate of 10%. The corporate tax rate is 30%. What is the NPV of leasing?
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QUESTION 1 A new machine is to be purchased for $200,000. The company believes it will generate $75,000 annually in revenue due to the purchase of this machine. The company will have to train an operator to run this machine and this will result in additional labor expenses of $25,000 annually. The new machine will be depreciated using 5 years MACRS, even though the life of the project is 7 years, and the salvage value is estimated to be $0 at the end of year 7. The tax rate is 40% and the company's MARR is 15%.
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