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Repair or Replace? (Practice Problem #6)

Repair or Replace? (Practice Problem #6)

There are many typical Net Present Value (NPV) problems. One is the “repair or replace” scenario. Here is a fictitious example. Good Ol’ Amalgamated (GOA) of Arizona has an aging fleet of 1-ton trucks which are eating up profits because of high maintenance,...

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Effects of Price Controls

Effects of Price Controls

FROM THE PRACTITIONERS NOTEBOOK: In efficient markets, prices are set by willing buyers and willing sellers agreeing on the price. This is the intersection of the sellers’ supply curve and buyers’ demand curve to arrive at a market clearing price. The supply curve is...

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