Last month you lent a work colleague $5000 to cover some overdue bills. He agreed to pay you in 1 month with interest at 2% for the month, thus owing you $5100. Today, when the repayment is due, he asked you to extend the loan for another month and he would pay you the $5100 next month. In the meantime, you have had the offer to invest as much as you wish in an oil-well venture that is expected to pay 25% per year and a hot new IT stock that is estimated to return 30% the first year. If you let your colleague have another month, what is the opportunity cost of your decision? (Note: Express your answer in dollar and percentage amounts.)
What will be an ideal response?
Money: The opportunity cost is the loss of the use of the $5000 plus the $100 interest.
Percentage: The 30% estimated return on the IT stock is the opportunity cost in percentage.
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Some modern power transmission systems now have major, high voltage DC transmission segments. There are a lot of good reasons for doing this but we will not go into them here. To go from the AC to DC, power electronics are used. We start with three-phase AC and then rectify it (using a full-wave rectifier). It was found that using a delta to wye and delta combination connected secondary would give us a much smaller ripple after the full-wave rectifier. How is this accomplished? Remember that these are real devices and are wound on common cores. Hint, using Figures 13.47 and 13.49, and the fact that each coil of the wye connected secondary and each coil of the delta connected secondary are wound around the same core of each coil of the delta connected primary so the voltage of each
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