An investor is considering buying some land for $100,000 and constructing an office building on it. three different buildings are being analyzed. building height 2 stories 5 stories 10 storiesinitial cost (excludes land) $400,000 $800,000 $2,100,000resale value* of land + building after 20-year horizon 200,000 $300,000 $400,000annual net rental income $70,000 $105,000 $256,000resale value considered a reduction in cost not a benefit. using benefit-cost ratio analysis and an 8% marr, determine which alternative, if any, should be selected. a) calculate the b/c ratios of each individual building design. b) conduct an incremental bc analysis. based on your analysis state which alternative should be selected?

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

According s.m.a.r.t guidline goal should be

Monthly price data for mdltx and ekwax from yahoo finance is contained in the excel spreadsheet for this exercise. there are 37 months of price data for the period from september 2009 to september 2012. (note: these prices already incorporate dividend payments.) the 36 monthly returns for each fund are also provided. calculate average (arithmetic) monthly return and standard deviation for each fund. you can use the excel functions average, stdev to derive these stats. annualize these statistics. use the correl function in excel to derive the correlation coefficient between the two sets of returns. (annual correlation is the same as monthly correlation. hence, no need to annualize this stat.) using the annualized statistics derived in step 1, compute the expected return and standard deviation for portfolios containing from 0% to 100% mdltx (and 100% to 0% ekwax) by 10% increments. graph the resulting portfolios. based on your analysis, is there any potential benefit to diversification across these two funds? explain. of the 11 portfolios you graphed, which are efficient?