Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Use the b/c ratio method to select one of these two alternatives: alternative 1 has an initial cost of 100$, has annual maintenance costs of $5 per year and has potential damage costs of $950. Alternative 2 has an initial cost of $110, annual maintenance costs of $9 per year and potential damage costs of $350. the interest rate is 20% per year, we will examine the case on a 20-year study period and we assume that the damage costs occur in the middle of the period, which is year 10?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91229888

Have any Question?


Related Questions in Microeconomics

Question explain the difference in the distribution

Question: Explain the difference in the distribution mechanism for goods and services in the market and command systems. Discuss the implications of this difference in terms of efficiency. The response must be typed, sin ...

Question why does marginal analysis work ie allows a firm

Question: Why does marginal analysis work (i.e., allows a firm to determine the correct level to produce where it maximizes profits or minimizes losses)? The response must be typed, single spaced, must be in times new ro ...

Quesiton the firms demand for labor is a derived demanda

Quesiton: The firm's demand for labor is a derived demand. A. Explain the law of diminishing marginal returns and show graphically how it affects labor demand curves. B. Explain and show graphically why the marginal reve ...

1 the market demand function for corn isqdnbsp 15 -2pthe

1.) The market demand function for corn is Q d  = 15 -2P. The market supply function is Q S  = 5P - 2.5, both measured in billions of bushels per year. The initial equilibrium price is $2.5, and the initial equilibrium q ...

Question imagine that the government reworks the welfare

Question: Imagine that the government reworks the welfare policy that was affecting Jonathan in question 1, so that for each dollar someone like Jonathan earns at work, his government benefits diminish by only 30 cents. ...

Question does money has opportunity costs and if so why

Question: Does money has opportunity costs? And if so why still people hold money?How can we determine monetary demand in respect to income? The response must be typed, single spaced, must be in times new roman font (siz ...

1price elasticity of demandathenbspprice elasticity of

1. Price elasticity of demand a. The  price elasticity of demand  measures: b. T  F Demand is   elastic  when the percent change in quantity demanded times  the percent change in price is  greater than 1 .   c. Extreme c ...

Question describe the various ways that monetary policy has

Question: Describe the various ways that monetary policy has been used to stimulate growth in various developed economies since the global financial crisis. The response must be typed, single spaced, must be in times new ...

Question assume a visitor from another nation decides to

Question: Assume a visitor from another nation decides to open a checking account at J & R National Bank. The visitor deposits $20,000 that is new money to the Macro Islands economy. The central bank has set a required r ...

Question assume a finite state of economy with three states

Question: Assume a finite state of economy with three states whose payoff matrix is given by X = $30 $ 20 $ 10 $20 $15 $0 1) what are the payoffs of the finite asset? 2) is the third asset redundant and why? 3) is the se ...

  • 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