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{6 points} You are the manager of a Fortune 50O hotel chah and must decide wtrere to locate a new hotel.

Hi I am in a real emergency. Can someone help me with this. I have done 1, 3, 4, 6 and 12. Can someone help me with any of the others. I really need this now.
1! {6 points} You are the manager of a Fortune 50O hotel chah and must decide wtrere to locate a new hotel. Based on tax considerationq your acountirry epartment srggests that Atlantic City is the best choice, folbwed dcdyby tm Vegas- ln particdar, your currs* year tax savings from locating in Atlantic City are 54 mil*m but ody 53 nSHoR in Las Vegan Your marketing department, on the other hand, has provided you with sales eslimates that suggest the present value pf the gross (of taxes) Wsating profits fiom locating in Atlantic Gty are only S10 million but are S14 million in Las Vego- ft udl @st S14 mflon to brdd the hotel in either location. o. lgnoring oll other considerctbnt where shotld you bulld the lotel. b. What are your firm's tr;orcm/c p$tu if you kote in Atlantic City? 2| {6 points} Your firms reercft departrn€nt h6 estinrated yotrrtotal rwenues to be: R (Q) = 3,OO0Q- Sdand ymr total cdsto be C {Q} = lfi} + 2Q}- Colculate the marginal benefr and marginal cost fundions. a. What level af Qmoximizes net benefrts? b. What is marginal benefrt atthis tevet of Q? c. What is the marginal cost ot this level of Q? d. What is the maximum IM of net fun$ts? e. Whot b another vwrd for "Nd futffi in this uamtr? 1
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3| (5 pcints| GGi-l recently instituted an in-house recycling program. The benefits of this program include not only the benefits to the environment of recacling but also the goodwill generated by GGH's leadership in this area. The costs of recycling include allthe energy, labor, and space to do the recycling. Suppose these benefits and costs are given by: B {Q} = l-00Q - 2Q2 and C (Q) = 2Q. Calculste the morginal benefit and marginol cost functions. a. What level of Q maximizes the total benefits of reclying? b. What level of Q minimizes the total costs of recyclingT c. Whot level of Qmoximizes the net benefits of recycling? d. What levelof recycling is optimal? Why? 4) (6 points| Apples and oranges are substitutes. A freeze in Florida destroys most of the oranges crop. What would you expect to hoppen to the market for the following: Use o narrative and graphs: a. Oranges? b. Apples? c. Orange juice? 5) {6 points} Fuji Software, lnc- has the two following mutually exclusive projects with their respective cash flows. Year ProiectA 0 -s 7,500 1 4,OO0 2 3,500 3 1,5OO Proiect B - s 5,ooo 2,500 !,z(NI 3,OOO Using the net present value rule to mnk fftese fwo projects, what projxt should be chosen if the discount rate is 1_5%? What if the discount rste wss 9%? 6) ( 5 points) You have been hired to replace the manager of a firm that used only two inputs, capital and labor, to produce output. The firm can hire as much labor as it wants at a wage of $5 per hour and can rent as much capital as it wants at a price of S50 per hour. After you look at the company's books, you leam that the company has been using capital and labor in amounts that imply a marginal product of labor of 50 and a marginal product of capital of 100. Do you knaw why the firm hired you? Explain.
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This question was asked on Mar 23, 2010.

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