Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

A mining development needs a railroad branch line. The expected operational life is 25 years after which the site will be restored and the track re¬moved. The line can be built with untreated wood ties that cost $25 installed and have a 6-year life or with treated wood ties that have an installed cost of $40 and a 10-year life. When ties are removed from service, they can be sold for $3 or if they have at least 4 years of life left, then they can be used elsewhere. The salvage value for that is estimated at $10. If the firm's inter¬est rate is 12%, should treated or untreated ties be purchased initially, and what is the best plan for a replacement pattern?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M938565

Have any Question?


Related Questions in Microeconomics

Question you are the manager of a small farm your yearly

Question: You are the manager of a small farm. Your yearly revenue is $300,000. You work in your farm. You could work somewhere else for $50,000 a year. However, if you work elsewhere the lack of supervision hurts perfor ...

Question according to an article in the new york times the

Question: According to an article in the New York Times, the Venezuelan government "imposes strict price controls that are intended to make a range of foods and other goods more affordable for the poor. They are often th ...

Question you work for a marketing firm that has just landed

Question: You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: guppy gummies, frizzles, and cannies. All of these products have been on the mar ...

Question suppose a firm has the following expenditures per

Question: Suppose a firm has the following expenditures per day: $150 for wages and salaries, $50 for materials, $40 for equipment, and $30 for rent. The owner-manager does not draw a salary but could receive income of $ ...

Question the current price of a stock is 50 suppose the

Question: The current price of a stock is $50. Suppose the following distribution describes the possible prices that the stock will be in 1 year: the probability the stock price will be 45 is 0, the probability the stock ...

Question adidas will put on sale what it bills as the

Question: Adidas will put on sale what it bills as the world's first computerized "smart shoe." But consumers will decide whether to accept the bionic running shoe's $250 price tag-four times the average shoe price at st ...

Question in the case of a binding price ceiling why is the

Question: In the case of a binding price ceiling, why is the price below the equilibrium price? Isn't it possible for suppliers to increase price (to hit the demand curve) at the quantity traded without losing consumers? ...

Question following are observations on the market price and

Question: Following are observations on the market price and the quantity of good X produced and consumed in three different years: $10 and 100 units, $4 and 57 units, and $8 and 88 units. Can we conclude that the market ...

Question a producer in a perfectly competitive industry has

Question: A producer in a perfectly competitive industry has a cost function described by TC(q)=16,000+6q+0.1q^2. If the market price is 90 and it has already committed to paying the fixed cost, what is the maximum profi ...

Question suppose a monopoly market has a demand function in

Question: Suppose a monopoly market has a demand function in which quantity demanded depends not only on market price (P) but also on the amount of advertising the firm does (A, measured in dollars). The specific form of ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved