The cash flow series for two projects are Alt. A and Alt. B. YEAR 0 1 2 3 4 5 6 Alt. A - F1 X X X X X X + S1
Alt. B - F2 Y Y Y Y Y Y + S2

Assume that F2 > F1, and X, Y, S1, and S2 are positive; the incremental rate of return (i*) on the additional investment in Alt. B can be calculated with the following expression: choose one:

a. 0 = - F2 + Y (P/A, i*, 6) + S2 (P/F, i*, 6)
b. 0 = - (F2 - F1) + (Y - X) (P/A, i*, 5) + (S2 - S1) (P/F, i*, 6)
c. 0 = - (F2 - F1) (F/P, i*, 6) + (Y - X) (F/A, i*, 6) + (S2 - S1)
d. 0 = - (F2 - F1) + (Y - X) + (Y + S2) - (X + S1)
e. 0 = (F1 - F2) (F/P, i*, 6) + (X - Y) (F/A, i*, 6) + (S2 - S1)
f. 0 = - F1 + X (P/A, i*, 6) + S1 (P/F, i*, 6)
g. 0 = - F2 + Y (P/A, i*, 6) + S2 (P/F, i*, 6)
h. 0 = - F1 + X (P/A, i*, 5) + S1 (P/F, i*, 6)
i. 0 = - F2 + Y (P/A, i*, 5) + S2 (P/F, i*, 6)

Alandlord rented an art studio to an artist. under the terms of the signed, written, two-year lease, the artist agreed to pay the landlord $1,000 per month and to assume responsibility for all necessary repairs. after the first year of the lease, the artist assigned the balance of his lease to a sculptor. the landlord approved the sculptor as a tenant and accepted two rent payments from her, and then the landlord sold the building to an investor. the sculptor had made two payments to the investor when an electrical fire broke out in the studio, injuring the sculptor. the fire was caused by faulty wiring. the landlord was aware that there was a dangerous wiring problem when he leased the property to the artist. but when the landlord discovered how costly repairs would be, he decided it would be more profitable to sell the property than to repair it. the problem was not easily discoverable by anyone other than an expert electrician, and the landlord did not tell the artist, the sculptor, or the investor about the problem. the sculptor sues to recover damages for her injuries. from whom can the sculptor recover?

Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes

The card shoppe needs to maintain 21 percent of its sales in net working capital. currently, the store is considering a four-year project that will increase sales from its current level of $349,000 to $408,000 the first year and to $414,000 a year for the following three years of the project. what amount should be included in the project analysis for net working capital in year 4 of the project?