actor Co. can produce a unit of product for the following costs: Direct material $ 8.60 Direct labor 24.60 Overhead 43.00 Total product cost per unit $ 76.20 An outside supplier offers to provide Factor with all the units it needs at $48.40 per unit. If Factor buys from the supplier, the company will still incur 60% of its overhead. Factor should choose to:

Anational survey asked people, "how often do you eat out for dinner, instead of at home? " the frequencies were as follows.

Here are the expected cash flows for three projects: cash flows (dollars) project year: 0 1 2 3 4 a − 6,100 + 1,275 + 1,275 + 3,550 0 b − 2,100 0 + 2,100 + 2,550 + 3,550 c − 6,100 + 1,275 + 1,275 + 3,550 + 5,550 a. what is the payback period on each of the projects? b. if you use a cutoff period of 2 years, which projects would you accept?

Financial markets and channel to . they also channel money from individuals who want to for the future to those who need cash to spend today. a third function of financial markets is to allow individuals and businesses to adjust their risk. for example, , such as the vanguard index fund, and , such as spdr's or “spiders,” allow individuals to spread their risk across a large number of stocks. financial markets provide other mechanisms for sharing risks. for example, a wheat farmer and a baker may use the to reduce their exposure to wheat prices. financial markets and intermediaries allow investors to turn an investment into cash when needed. for example, the of public companies are because they are traded in huge volumes on the . are the main providers of payment services by offering checking accounts and electronic transfers. finally, financial markets provide information. for example, the of a company that is contemplating an issue of debt can look at the yields on existing to gauge how much interest the company will need to pay.