A producer of electronic clocks, ClockRUs (CRU) wants to create an advertising campaign to stimulate their demand. Based on CRU s experience, if they spend $250,000 on newspapers and magazines now, their sales should increase by $180,000 in the first year, and $150,000 in the second year. However, with the changing interest rate, and profitability concern, CRU must have 9% rate of return. a. What is the Present Value of year 1 sales increase (cash flow in year 1)?
b. What is the Present Value of year 2 sales increase (cash flow in year 2)?
c. What is the cash flow now (what is CF(0))?
d. Based on the NPV analysis, would you advise CRU to do the advertising? Explain why?

Which type of data is generally stored in different file formats, such as text files, spreadsheets, and so on?

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i.e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i.e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process.b)consumers have the right to clean air; consumers are dominant in the bargaining process.c)firm has the right to pollute; firm is dominant in the bargaining process.d)firm has the right to pollute; consumers are dominant in the bargaining proces

The new york times (nov. 30, 1993) reported that “the inability of opec to agree last week to cut production has sent the oil market into turmoil . . [leading to] the lowest price for domestic crude oil since june 1990.” why were the members of opec trying to agree to cut production? so they could save more oil for future consumption so they could lower the price so they could raise the price why do you suppose opec was unable to agree on cutting production? because each country has a different production capacity because each country experiences different production costs because each country has an incentive to cheat on any agreement the newspaper also noted opec’s view “that producing nations outside the organization, like norway and britain, should do their share and cut production.” what does the phrase “do their share” suggest about opec’s desired relationship with norway and britain? opec would like norway and britain to keep their production levels high. opec would like norway and britain to act competitively. opec would like norway and britain to join the cartel.