Legend service center just purchased an automobile hoist for $32,400. the hoist has an 8-year life and an estimated salvage value of $3,000. installation costs and freight charges were $3,300 and $700, respectively. legend uses straight-line depreciation. the new hoist will be used to replace mufflers and tires on automobiles. legend estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week. each muffler sells for $72 installed. the cost of a muffler is $36, and the labor cost to install a muffler is $16. (a) compute the cash payback period for the new hoist. (round answer to 2 decimal places, e. g. 10.50.) (b) compute the annual rate of return for the new hoist. (round answer to 1 decimal place, e. g. 10.5.)

At the end of the week, carla receives her paycheck and goes directly to the bank after work to make a deposit into her savings account. the bank keeps the required reserve and then loans out the remaining balance to a qualified borrower named malik as a portion of his small business loan. malik uses the loan to buy a tractor for his construction business and makes small monthly payments to the bank to payback the principal balance plus interest on the loan. the bank profits from a portion of the interest payment received and also passes some of the interest back to carla in the form of an interest payment to her savings account. in this example, the bank is acting

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

After the price floor is instituted, the chairman of productions office buys up any barrels of gosum berries that the producers are not able to sell. with the price floor, the producers sell 300 barrels per month to consumers, but the producers, at this high price floor, produce 700 barrels per month. how much producer surplus is created with the price floor? show your calculations.