EXPLORING ECON.-W/ACCESS (LL) >CUSTOM<
7th Edition
ISBN: 9781305757448
Author: Sexton
Publisher: CENGAGE C
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Chapter 20, Problem 9P
To determine
(a)
To explain:
Whether on-the-job experience would improve the productivity of labor and will lead to
To determine
(b)
To explain:
Whether vocational school would improve the productivity of labour and will lead to economic growth.
To determine
(c)
To explain:
Whether a decrease in the amount of capital per worker would improve the productivity of labour and will lead to economic growth.
To determine
(d)
To explain:
Whether improvement in the management of resources would improve the productivity of labour and will lead to economic growth.
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Bill’s father read that each year a car’s value declines by 10%. He also read that a new car’s value declines by 12% as it is driven off the dealer’s lot. Maintenance costs and the costs of “car problems” are only $200 per year during the 2-year warranty period. Then they jump to $750 per year, with an annual increase of $500 per year.Bill’s dad wants to keep his annual cost of car ownership low. The car he prefers cost $30,000 new, and he uses an interest rate of 8%. For this car, the new vehicle warranty is transferrable.(a) If he buys the car new, what is the minimum cost life? What is the minimum EUAC?(b) If he buys the car after it is 2 years old, what is the minimum cost life? What is the minimum EUAC?(c) If he buys the car after it is 4 years old, what is the minimum cost life? What is the minimum EUAC?(d) If he buys the car after it is 6 years old, what is the minimum cost life? What is the minimum EUAC?(e) What strategy do you recommend? Why?
Please show each step and formula,…
Chapter 20 Solutions
EXPLORING ECON.-W/ACCESS (LL) >CUSTOM<
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