A chemical engineer is on contract working in a relatively high-inflation country in Central America. She wishes to calculate a project's present worth with estimated costs of $50,000 now and $6000 per year for 5 year beginning one year from now. Use a real interest rate of 12% per year to make the calculations, a. without an adjustment for inflation (10 points) and b. considering inflation at a rate of 10% per year. (10 points)

Which term refers to the cost that motivates an economic decision

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars

Tri fecta, a partnership, had revenues of $369,000 in its first year of operations. the partnership has not collected on $45,000 of its sales and still owes $39,500 on $155,000 of merchandise it purchased. there was no inventory on hand at the end of the year. the partnership paid $27,000 in salaries. the partners invested $48,000 in the business and $23,000 was borrowed on a five-year note. the partnership paid $2,070 in interest that was the amount owed for the year and paid $9,500 for a two-year insurance policy on the first day of business. compute net income for the first year for tri fecta.