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Will Mexico stop producing tequila? Because of record-low industry prices for the agave azul plant, from which tequila is distilled, farmers in Jalisco and other Mexican states are switching to more lucrative plants like corn, which is used for the now-trendy ethanol fuel alternative. (Kyle Arnold, “No Mas Tequila,” The Monitor, September 17, 2007.) Planting […]

 

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The U.S. Bureau of Labor Statistics reports that the average salary for postsecondary economics teachers in the Raleigh-Durham-Chapel Hill metropolitan area, which has many top universities, rose to $105,200 (based on a 52-week work year) in 2003. According to the Wall Street Journal (Timothy Aeppel, “Economists Gain Star Power,” February 22, 2005, A2), the salary […]

 

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California supplies the United States with 80% of its eating oranges. In late 1998, four days of freezing temperatures in the state’s Central Valley substantially damaged the orange crop. In early 1999, Food Lion, with 1,208 grocery stores mostly in the Southeast, said its prices for fresh oranges would rise by 20% to 30%, which […]

 

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In the estimation of incremental cash flows for a new project, several costs and issues are considered. a) In reference to the lecture materials for cash flow estimation, list the seven important issues to be kept track of in estimating incremental cash flows for expansion, replacement, or new capital projects. [No explanation is required for […]

 

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