Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Question: In planning a small two-story office building, the architect has submitted two designs. The first provides foundation and structural details so that two additional stories can be added to the required initial two stories at a later date and without modifications to the original structure. This building would cost $1,400,000. The second design, without such provisions, would cost only $1,250,000. If the first plan is adopted, an additional two stories could be added at a later date at a cost of $850,000. If the second plan is adopted, however, considerable strengthening and reconstruction would be required, which would add $300,000 to the cost of a two-story addition. Assuming that the building is expected to be needed for 75 years, by what time would the additional two stories have to be built to make the adoption of the first design justified? MARR is 10% per year.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92315781

Have any Question?


Related Questions in Microeconomics

Question suppose the fed were required to conduct monetary

Question: Suppose the Fed were required to conduct monetary policy so as to hold the unemployment rate below 4%, the goal specified in the Humphrey-Hawkins Act. What implications would this have for the economy? The resp ...

Quesiton in 1980 automobile manufacturers in the united

Quesiton: In 1980, automobile manufacturers in the United States asserted that import quotas be instituted on foreign-produced vehicles marketed in the United States. In a critical essay, elaborate on the costs and benef ...

Question risk management covers many areas of an

Question: Risk management covers many areas of an organization's operations. Describe a minimum of two elements of risk management and (1) evaluate if those elements are present in your organization's risk management pro ...

Question is pork-barrel spending always a bad thing can you

Question: Is pork-barrel spending always a bad thing? Can you think of some examples of pork-barrel projects, perhaps from your own district, that have had positive results? The response must be typed, single spaced, mus ...

Question using the islm and nfinx diagrams show how the

Question: Using the IS/LM and NFI/NX diagrams, show how the following changes in the economy would affect the value of the dollar and the net export balance. (A) Domestic auto manufacturers offer zero-interest financing ...

Question abc company pays members of its sales force

Question: ABC Company pays members of its sales force commissions based on their dollar volumes, but XYZ Company pays its salespeople fixed monthly salaries. What characteristics of the company, its market, or the produc ...

Question two types of consumers workers and retirees share

Question: Two types of consumers (workers and retirees) share a community with a polluting cheese factory. The pollution is nonrival and nonexcludable. The total damage to workers is p^2 where p is the amount of pollutio ...

Question identify at least two effective marketing

Question: Identify at least two effective marketing strategies for helping companies avoid "marketing blunders" for their products or services in foreign countries. Outline the pros (advantages) and cons (disadvantages) ...

Questions -1 fifteen years ago 1000 was deposited in a bank

Questions - 1. Fifteen years ago $1000 was deposited in a bank account, and today it is worth $2370. The bank pays interest semi-annually. What was the nominal annual interest rate paid on this account? 2. You borrow $35 ...

Question write a short essay of about 750 words each on the

Question: Write a short essay of about 750 words each on the following topics: What are the common defenses of protectionism? Evaluate them. Explain Coase Theorem and show how it works with examples. How does Mancur olso ...

  • 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