Two mutually exclusive alternatives are being considered for the environmental protection equipment at a petroleum refinery. one of these alternatives must be selected. a. which environmental protection equipment alternative should be selected? the firm's marr is 18% per year. assume the equipment will be needed indefinitely. assume repeatability is appropriate for this comparison. b. assume the study period is shortened to five years. the market value of alternative b after five years is estimated to be $14 comma 000. which alternative would you recommend? assume repeatability is appropriate for this comparison.

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.