Boston Corporation is planning to purchase a new machine for $4,000,000. The company expects to reduce the product’s variable costs of labor and maintenance by $5.50/unit and $0.95/unit. The manager estimates that 500,000 units of the product will be manufactured and sold each year with a product life cycle of two yeas, at which time the machine will be discarded with no residual value.

Brandt enterprises is considering a new project that has a cost of $1,000,000, and the cfo set up the following simple decision tree to show its three most likely scenarios. the firm could arrange with its work force and suppliers to cease operations at the end of year 1 should it choose to do so, but to obtain this abandonment option, it would have to make a payment to those parties. how much is the option to abandon worth to the firm?

Gary lives in an area that receives high rainfall and thunderstorms throughout the year. which device would be useful to him to maintain his computer?

When patey pontoons issued 4% bonds on january 1, 2018, with a face amount of $660,000, the market yield for bonds of similar risk and maturity was 5%. the bonds mature december 31, 2021 (4 years). interest is paid semiannually on june 30 and december 31?