Certain technologies industries, such as the software development companies, are faced with constantly changing innovations, technologies, short product life cycles, modular designs, frequent manufacturing changes and demanding customers.

Under these conditions, what type of relationship would you recommend for a critical component supplier? And what additional measures would you include in this contract to protect your business and supplier relationships?

The combustion of acetylene C2H2 is a spontaneous reaction given by the equation: 2C2H2 (g) + SO2(g) --> 4CO2 (g) + 2 H2O(l)

As expected for a combustion the a combustion the reaction is exothermic.

a.) What is the sign of Delta H?

b.) What do you expect for the sign of Delta S?

c.) Explain the spontaneity of the reaction in terms of the enthalpy and entropy changes.

Please show work and explain

analyze the reasons why the short-term project that you have chosen might be ranked higher under the NPV criterion if the cost of capital is high, while the long-term project might be deemed better if the cost of capital is low. Determine whether or not changes in the cost of capital could ever cause a change in the internal rate of return (IRR) ranking of two (2) projects.

Question 20. Consider a 2-year bond. The coupon rate of the bond is 10%, and the bond pays coupons semiannually. The bond is selling at a yield to maturity of 8.0% annually, or 4.0% semi-annually.

a. What is the duration of the bond? (12 points)

b. If the semi-annually yield changes from 4.0% to 5.0%, what is the predicted change in the price of the bond using duration? (8 points)

Explain what happens to saving, investment, and the real interest rate in each of the following scenarios in a closed economy. Illustrate your answer using a saving-investment diagram. Label the axes and curves clearly.

a) Real money supply increases

b) The tax code changes so that business firms face higher tax rates on their revenue (offset by other lump-sum tax changes so there’s no overall change in tax revenue). The rise in taxes reduces desired investment, shifting the Id curve to the left: in equilibrium, this reduce real interest rate, reducing saving as well as investment.

c) Current output rises The rise in output raises desired saving, shifting the Sd curve to the right; in equilibrium, this reduces the real interest rate, increasing investment as well.

d) The average educational level rises, inducing an increase in the future marginal productivity of capital. The rise in future marginal productivity of capital raises desired investment, shifting the Id curve to the right; in equilibrium, this raises the real interest rate, increasing saving as well as investment. 

Contribution Margin Analysis—Sales

Select Audio Inc. sells electronic equipment. Management decided early in the year to reduce the price of the speakers in order to increase sales volume. As a result, for the year ended December 31, the sales increased by $23,500 from the planned level of $1,228,500. The following information is available from the accounting records for the year ended December 31.

a. Prepare an analysis of the sales quantity and unit price factors. Use a minus sign for any negative amounts.

b. Did the price decrease generate sufficient volume to result in a net increase in contribution margin if the actual variable cost per unit was $7, as planned?

My company sells California t-shirts to Bay Area tourists, and this is a perfectly competitive market. My cost function is given by ?(?) = ? ? ? ? .

a) Find my profit-maximizing quantity produced if the market price for my California t-shirts is $25. What would my profits be?

b) The COVID-19 pandemic reduces willingness and ability to travel and visit the Bay Area. At the same time, t-shirt companies have to pay for personal protective equipment for their workers and hire more staff to make sure that customers aren’t entering shops without masks on. Use the model of supply and demand to make a prediction about expected changes in price and quantity in this market due to these changes.

c) As the economy slips into recession a significant amount of uncertainty is introduced. Suppose that now there is a 20% chance that the recession is deep and the market price falls to $10 per shirt, otherwise the recession is relatively mild and the price falls to just $20 per shirt. Given this uncertainty, what should be the firm’s profit-maximizing level of output? (assume their cost function is still ?(?) = 1 4 ? 2 )

We are evaluating a project that costs $604,000, has an 8 year life, and has no salvage value. Assume that depreciation is straight-line to zero of the life of the project. Sales are projected at 55,000 units per year. Price per unit is $36, variable cost per unit is $17, and fixed cost are 685,000 per year. The tax rate is 21 percent and we require a return of 15 percent on this project.

a. Calculate the accounting break-even point.

b. Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales.

c. What is the sensitivity of OCF to changes in the variable costs figure? Explain what your answer tells you about a $1 decrease in estimated variable cost.

In the previous problem, suppose the projections given for price, quantity, variable costs, fixed cost are all accurate to within plus or minus 10 percent. calculate the best-case and worst-case NPV figures.