Q1. When the price of Ford pickup trucks rises from $18000 to $19000, the quantity of Chevy trucks demanded increases from $112000 to $144000. What does the cross elasticity of demand between Ford and Chevy trucks equal?
Q2.Tek Systems is a manufacturer of vertical compactors, also it is examining its cash flow necessities for the next 5 years. The company wants to replace office equipment like machines and computer at assorted times over the five year planning period. Specifically, the company expects to spend $9000 two years from now, $8000 three years from now, and $5000 five years from now. What is the present worth of the planned expenditures at an interest rate of 10% per year?