7. Consider the following: - A factory can produce 150,000 units of a good/year at a cost of $100/unit may produce the good for 2 years - Retail price is initially $500/unit, but will either increase or decrease by $100 during year 1, and then subsequently increase or decrease by $200 during year 2. Each year, the increase or decrease is equally likely - Fixed costs of running the factory are $50M per year if the factory is implemented (not including rent) - Rent is $10M, whether or not the factory is set-up - We will assume risk neutrality and a 10% cost of capital - For simplicity, we will assume that there is no initial (year 0) cashflow associated with the factory a. The production technology of the factory allows for flexible starting (but not stopping). This means that in year 1, the factory may be operated or not. If the factory is operational in year 1, it will also be operational in year 2. If the factory is not operational in year 1, then it may either be operated or not in year 2. What is the present value of the factory with this technology

Which of the following statements are false regarding activity-based costing? non-manufacturing costs are important to include when calculating the cost of each product. costs are allocated based on a pre-determined overhead rate. transitioning from traditional costing methods to activity-based costing can be complicated and costly. activity-based costing follows the same basic calculation methods as traditional costing approaches. none of the above

Multiple-choice questions have a special grading rule determined by your instructor. assume that your instructor has decided to grade these questions in the following way: if you submit an incorrect answer to a multiple-choice question with n options, you will lose 1/(nâ’1) of the credit for that question. just like the similar multiple-choice penalty on most standardized tests, this rule is necessary to prevent random guessing.if a multiple-choice question has five answer choices and you submit one wrong answer before getting the question correct, how much credit will you lose for that part of the question? multiple-choice questions have a special grading rule determined by your instructor. assume that your instructor has decided to grade these questions in the following way: if you submit an incorrect answer to a multiple-choice question with options, you will lose of the credit for that question. just like the similar multiple-choice penalty on most standardized tests, this rule is necessary to prevent random guessing.if a multiple-choice question has five answer choices and you submit one wrong answer before getting the question correct, how much credit will you lose for that part of the question? 100% 50% 33% 25% 20%

What steps did jim moon take to build a relationship between his business and bank rhode island? 2. what collateral, if any, do you think moonworks can use as security for a future loan? explain your answer. 3. put yourself into the shoes of the banker handling the moonworks' account. what questions would you ask if the company asks for additional debt financing?