Sway's market is considering a project that will require the purchase of $1.4 million in new equipment. the equipment will be depreciated straight-line to zero over the 5-year life of the project. the firm expects to sell the equipment at the end of the project for 20 percent of its original cost. new net working capital equal to 10 percent of sales will be required to support the project. all of the new net working capital will be recouped at the end of the project. annual sales are estimated at $750,000 with costs of $338,000. the required rate of return is 12 percent and the tax rate is 34 percent. what is the value of the depreciation tax shield in year 2 of the project?

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.

Suppose general motors demands labor according to the labor demand function 푤푤= 40−0. 5퐸퐸, where 푤푤 is the hourly wage and 퐸퐸 is the number of employees. the united auto workers union has a utility function given by 푈푈=푊푊∗퐸퐸. a.in 1984, the united auto workers union started negotiations with general motors by assuming that they were a monopoly union. find the wage and employment demands that the united auto workers union would have demanded before any bargaining began. b.if general motors and the united auto workers union both had excellent bargaining representatives, would this be the final labor contract? if not, then explain in words and graphically where they would end up after the bargaining process.

Dyed-denim corporation is seeking to lower the costs of value creation and achieve a low-cost position. as a result, it plans to move its manufacturing plant from the u.s. to thailand, which based on company research, is the optimal location for production. this strategic move will most likely allow the company to realize