1. Compute a net income break-even point for the smaller and larger facilities. 2. Find the sales level (after the first year) that will result in a net present value of $0. Remember that sales the first year will be half of those after the first year. 4. Prepare a graphical sensitivity analysis showing the relationship between sales level and net present value for each size alternative. 5. Should they lease space of 10,000 or 15,000 square feet

Suppose life expectancy in years (l) is a function of two inputs, health expenditures (h) and nutrition expenditures (n) in hundreds of dollars per year. the production function is upper l equals ch superscript 0.40 baseline upper n superscript 0.60l=ch0.40n0.60. beginning with c = 1, a health input of $400400 per year (hequals=44) and a nutrition input of $400400 per year (nequals=44), show that the marginal product of health expenditures and the marginal product of nutrition expenditures are both decreasing. the marginal product of health expenditures when h goes from 44 to 55 is nothing, and the marginal product of health when h goes from 66 to 77 is nothing. (round your answers to three decimal places.)