Afirm that purchases electricity from the local utility for $200,000 per year is considering installing a steam generator at a cost of $290,000. the cost of operating this generator would be $150,000 per year, and the generator will last for five years. if the firm buys the generator, it does not need to purchase any electricity from the local utility. the cost of capital is 9%.

for the local utility option, consider five years of electricity purchases. for the generator option, assume immediate installation, with purchase and operating costs in the current year and operating costs continuing for the next four years. assume payments under both options at the start of each year (i. e., immediate, one year from four years from now).
what is the net present value of the more attractive alternative?

round your answer to the nearest dollar. report the npv of cost as a negative number.

Consider the local telephone company, a natural monopoly. the following graph shows the monthly demand curve for phone services and the company’s marginal revenue (mr), marginal cost (mc), and average total cost (atc) curves. 0 2 4 6 8 10 12 14 16 18 20 100 90 80 70 60 50 40 30 20 10 0 price (dollars per subscription) quantity (thousands of subscriptions) d mr mc atc 8, 60 suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. complete the first row of the following table. pricing mechanism short run long-run decision quantity price profit (subscriptions) (dollars per subscription) profit maximization marginal-cost pricing average-cost pricing suppose that the government forces the monopolist to set the price equal to marginal cost. complete the second row of the previous table. suppose that the government forces the monopolist to set the price equal to average total cost. complete the third row of the previous table. under average-cost pricing, the government will raise the price of output whenever a firm’s costs increase, and lower the price whenever a firm’s costs decrease. over time, under the average-cost pricing policy, what will the local telephone company most likely do

When the amount for land is 36,000 and the amount paid for expenses is 10,000, the balance of total asset is

Tony is a wheat farmer, but he also spends part of his day teaching guitar lessons, due to the popularity of his local country western band, farmer tony has more students requesting lessons than he has time for if he is to also maintain his farming business. farmer tony charges $25 an hour for his guitar lessons. one spring day, he spends 10 hours in his fields planting $130 with of seeds on his farm. he expects that the seeds he planted will yield $300 worth of wheat a. 130 b. 260 c. 170 d. $-80