Answer:
a) should install the solar cells
alternative 1, solar cells
initial investment $18,000
annual expenses $2,400 (5 years)
NPV = $27,097.89
AW = (10% x $27,097.89) / [1 - (1 + 10%)⁻⁵] = $7,148.36
alternative 2, power line
initial investment $27,500
annual expenses $1,000 (5 years)
NPV = $31,290.79
AW = (10% x $31,290.79) / [1 - (1 + 10%)⁻⁵] = $8,254.43
b) $23,307.10
The white house is in the middle. Good riddle!
If a drought ruins a significant amount of the coffee crop,
it is expected that the price of the coffee will rise. It is because if there
are less products or the less it produces, it causes the product to rise
because the product will be of demand by the consumers.
Answer:
US specialisation in TV can be stated on the basis of Absolute Advantage, not comparative advantage.
Explanation:
Absolute Advantage is when a country can produce more output per input of a commodity, than other country.
Comparative Advantage is when a country can produce a good at lower opportunity cost (in terms of other sacrifised)
China can produce more (ie 5 units television) per hour employed, compared to US able to produce lesser (3 units) in the same time. So, on the basis of Absolute Advantage, it can be stated that US should specialise in TV production.
However, since other good's details have not been given. So, we cannot attain the relative opportunity costs. Hence, specialisation on the basis of comparative advantage can't be stated.
Answer: 2
Explanation: You don't automatically gain foresight when you start a business