4. Answer parts (a) and (b) of this question. Venture capitalists rely relatively heavily on criteria relating to characteristics of the inventor (for example, whether he/she is capable of sustained effort) when deciding whether to fund a new innovation-based venture. On the other hand, internal review procedures tend to rely relatively heavily on criteria relating to characteristics of the invention (for example, whether the invention is technically feasible). (a) [25 marks] Explain the meaning of the terms “adverse selection" and “moral hazard". (b) [25marks ]Describe the main characteristics of venture capital. In what sense can venture capital be seen as a response to adverse selection and moral hazard in the market for funding new innovations?

Texas Government class.

Given the geographic, economic, and population diversity of Texas, how does the state maintain the one-party dominated provincialism that dominates Texas' political culture?

Two alternatives for purchasing a new printing machine (from providers A and B) are being considered for a production upgrade of a printing facility. Alternative A has a life of 2 years, first cost of $1200, annual reduction in maintenance cost (can be treated as revenue in this cash flow) of $650, and salvage value after 2 years of $250. Alternative B has a life of 3 years, first cost of $1650, annual reduction in maintenance cost of $790, and salvage value after 3 years of $250. MARR = 8%. Alternatives are replicable in the future. Calculate the NPW of each alternative. Show calculation steps leading to this choice and provide explanations whenever possible.

PROMPT:  The article contains a passage which says:  David Jacob, who joined S&P in 2008 to head its structured-finance sector, says he ran monthly reports explaining to his boss why S&P wasn’t selected to rate deals. The answer was almost always that its criteria were tougher than another’s.   “Little by little it weakens,” says Mr. Jacob, who lost his job in a reorganization in 2012 and is retired. “If you have the tightest criteria, who’s going to use you?…The incentives are wrong. They stayed wrong.”

Comment on the market for bond ratings, including who should pay the rating agency that does the work to rate the bonds

Two mutually exclusive alternatives are bring considered: A and B. Both alternatives cost $1,200 at the present. However, the pattern of revenue from them is different. Alternative A has the potential to bring more revenues later in the project life. The expected revenues of alternative A are: $350, $500, and $850 by the ends of years one to three, respectively. Alternative B promises more immediate cash inflow which is expected to diminish with time: $750, $300, and $100 by the ends of years one to three, respectively. Use MARR=8%.

a) Calculate the Internal Rate of Return of each alternative.

b) Which alternatives are feasible?

c) Calculate the Net Present Worth of each alternative and compare them.

Two mutually exclusive alternatives are bring considered: A and B. Both alternatives cost $1,200 at the present. However, the pattern of revenue from them is different. Alternative A has the potential to bring more revenues later in the project life. The expected revenues of alternative A are: $350, $500, and $850 by the ends of years one to three, respectively. Alternative B promises more immediate cash inflow which is expected to diminish with time: $750, $300, and $100 by the ends of years one to three, respectively. Use MARR=8%.

a) Calculate the Internal Rate of Return of each alternative.

b) Which alternatives are feasible?

c) Calculate the Net Present Worth of each alternative and compare them.

Two alternatives for purchasing a new printing machine (from providers A and B) are being considered for a production upgrade of a printing facility. Alternative A has a life of 2 years, first cost of $1200, annual reduction in maintenance cost (can be treated as revenue in this cash flow) of $650, and salvage value after 2 years of $250. Alternative B has a life of 3 years, first cost of $1650, annual reduction in maintenance cost of $790, and salvage value after 3 years of $250. MARR = 8%. Alternatives are replicable in the future. Calculate the NPW of each alternative. Show calculation steps leading to this choice and provide explanations whenever possible.

RATES of GROWTH

1. Calculate and state the following for the years shown for the Canadian economy: the rates of growth (% per year) of

1. nominal GDP;        
2. real GDP;        
3. real GDP per capita.
4. Real Medium family income

(Provide the raw data for all the years and show your work at least once for each category.)

2. Plot all your results calculated in ( 1 ) above on one graph. Must use graph paper and utilize the entire page. (Use a time series graph.)

Please answer according to Canadian education standards.

Whole E. Mann has no Will and wants know what would happen to his Prayer Tower key chain if he passed away. What happens to a guy's stuff when he passes away with no Will?

In January 2007, XM enjoyed about 58 percent of satellite radio subscribers, and Sirius had the remaining 42 percent. Both firms were suffering losses, despite their dominance in the satellite radio market. In 2008, the DOJ decided not to challenge a merger, and these two firms united to become Sirius XM. If you were an economic consultant for Sirius, what economic arguments would you have presented to the DOJ to persuade it not to challenge the merger? Explain.

When deciding whether to tighten or loosen monetary policy, central banks weigh the relative risks to price stability and growth. Mention two indicators that the MPC use to gauge the risk to inflation and two indicators the MPC use to gauge the risk to growth.

Based on the information in the Press Release, in the thinking of the MPC did the risk to growth outweighed the risk to inflation or vice versa? Refer to specific points from the press release to back up your argument.

How has the Covid – 19 pandemic affected online e-business transactions? Give examples.

Motors Repair Company contracts to sell a car to Nikki for $3,500. Nikki gives Motors Repair a worthless check for the price. Nikki assigns her right to the car to Opie. If Motors Repair refuses to deliver the car to Opie and Opie sues, can Motors Repair raise Nikki’s fraud as a defense against delivery of the car to Opie? Explain.