Microeconomics: Principles & Policy
14th Edition
ISBN: 9781337794992
Author: William J. Baumol, Alan S. Blinder, John L. Solow
Publisher: Cengage Learning
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Chapter 4, Problem 9DQ
To determine
To analyze the consistency of given data with the two given explanations.
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QUESTION 4 (continued)
while of machine B is N300, 000 only. Recommend which of the machines should be purchased.
Assume 10% interest.
(13mks)
QUESTION 5 (25 marks)
a) Why do Engineers have to monitor of depreciation of equipment/machines?
(5mks)
b)
Enumerate the options available evaluating depreciation of equipment/machines and explain in
detail anyone of them.
(10mks)
c)
The cost of a machine N1,600,000 ant its salvage (scrap) value is N400,000. Determine the
depreciation charges for each, if the estimated life of the machine is 4 years.
(10mks)
QUESTION 6 (25 marks)
(6mks)
(ii) Inventory Costs (iii) Sunk Cost
(8mks)
a) What are the types of equipment replacement decisions a company may face?
b) Define the following terms: (i) Quality Costs
(iv) Technological Obsolesce
, c) A power holding company purchased new coal extraction equipment 3 years ago for N600,000.
Management has discovered it is technologically outdated now. A new equipment alternative) has
been identified. If a…
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Microeconomics: Principles & Policy
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