Avier is an IE at Lobos Manufacturing. He has been studying process line G to determine if an automated system would be preferred to the existing labor- intensive system. If Lobos wants to earn at least 20% and uses a 15-year planning horizon, which alterna- tive is preferred? Contributed by Paul R. McCright, University of South Florida Labor Intensive Automated paiwoll $0 $110,000 Initial cost 10 18,500 Installation cost 0.IE 2,000 4,800 First-year O&M 450 950 Annual increase 72,000 47,500 First-year labor costs 5% Annual increase 5% 2,500 20,000 Salvage value

Gary becker's controversial the economics of discrimination concludes that price discrimination has no effect on final profits. price discrimination benefits monopolies. labor discrimination in hiring results in more efficient allocations of production. discrimination in hiring practices has no effect on final profits. labor discrimination harms firms that practice it due to increased labor costs. price discrimination harms monopolies, which refutes over two centuries of economic theory.

The card shoppe needs to maintain 21 percent of its sales in net working capital. currently, the store is considering a four-year project that will increase sales from its current level of $349,000 to $408,000 the first year and to $414,000 a year for the following three years of the project. what amount should be included in the project analysis for net working capital in year 4 of the project?

R& m chatelaine is one of the largest tax-preparation firms in the united states. it wants to acquire the tax experts, a smaller rival. after the merger, chatelaine will be one of the two largest income-tax preparers in the u.s. market. what should chatelaine include in its acquisition plans? it should refocus its attention from the national to the international market. in addition to acquiring the tax experts, it should also determine the best way to drive independent "mom and pop" tax preparers out of business. chatelaine will need to explain to the federal trade commission how the acquisition will not result in an increase in prices for consumers. chatelaine should enter a price-based competition with its other major competitor to force it out of business and become a monopoly.