Assume that Friday and Crusoe have identical utility functions described by the following table. Number of Oranges Utility Marginal Utility
1 11
2 21
3 30
4 38
5 45
6 48
7 50
8 51
(1) Assume that there are eight oranges to be divided between Friday and Crusoe. Take a utilitarian view. What is the social welfare corresponding to each possible allocation of orange? What allocation maximizes the utilitarian social welfare? Show that it has the property that the marginal utility of an orange given to each individual is the same.
(2) Now take a Rawlsian view while assuming again that there are eight oranges to be divided between Friday and Crusoe. What is the social welfare corresponding to each possible allocation of orange? What allocation maximizes the Rawlsian social welfare?
(3) Now assume that initially, Crusoe has six oranges and Friday two. Assume also that for every two oranges taken from Crusoe, Friday gets only one, an orange being lost in the process. What does the utility possibility frontier look like now? Which of the feasible allocations maximizes social welfare with a utilitarian social welfare function? Which of the feasible allocations maximizes social welfare with a Rawlsian social welfare function?

Personal financial planning is the process of creating and achieving financial goals? true or false

When an interest-bearing note comes due and is uncollectible, the journal entry includes debitingaccounts receivable and crediting notes receivable and interest revenue. accounts receivable and crediting interest revenue. notes receivable and crediting accounts receivable and interest revenue. notes receivable and crediting accounts receivable.

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?