A The Sanders Electric Company is evaluating two projects for pOssible inclusion in the firm's capital budget. Project M will require a $ 37,000 investment while project O's investment will be S46,000. After-tax cash inflows are estimated as follows for the two projects : i. dbirlW Jnom YEAR PROJECT M PROJECT O $ 12,000 $ 10,000 10,000 12,000 eoft Bdfemues 15,000 4TO18 2oitinuhoggo in12,000 R nomh15,000 12,000 2500919hib 1o1 ieuibs o 5 lsiqso lo 1200 e'min '15, 000 a. Determine the payback period for each project. bn b. Calculate the NPV and PI for each project based on a 10 SToie percent cost of capital. Which, if either, of the projects is acceptable

Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. the frictional unemployment rate is percent and the actual unemployment rate (in this economy) is percent.