Expenditure on housing is one of the major expenses individuals face in their lifetime.

However, over the last 20 years, housing prices have fluctuated quite considerably. You have been hired by a consumer affairs think-tank and tasked with producing an economic analysis explaining economic reasons why housing prices fluctuates over time (last 20 years) and its impact on relevant markets in the economy. Finally discuss some of the welfare implications (think of consumer and producer surplus) of changes in housing prices.

Questions:

1. Which of the following is the type of analysis you would most likely use to assess the impact of arbitrary changes in the discount rate?

   A.Sensitivity analysis

   B.Scenario analysis

   C.Both

   D.Neither

2. Which of the following is the type of analysis you would most likely use to assess the impact of an economic recession?

   A.Sensitivity analysis

   B.Scenario analysis

   C.Both

   D.Neither

3. Because most of a company's value comes from the terminal period, we do not have to worry too much about near-term forecasts.
   Answer (True/False)

Consider a five-year project with the following information: initial fixed asset investment = $420,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $32/unit; variable costs = $15.60/unit; fixed costs = $148,000 per year; quantity sold = 100,000 units per year; tax rate = 25%. How sensitive is OCF to changes in quantity sold (i.e., how much does OCF change given an increase of one unit sold in a year)?

A sales related system was developed by a local company to satisfy and to be configured based on customers requirements. For example:

1. Customer A would like to buy the system, but he needs 2 additional configuration to be developed.
2. Customer B would like to buy the system, but needs 4 additional configuration to be developed and 2 functionalities to be removed.
3. Customer C would like partially to by the system if some changes done in the inventory subsystem.

based on the 3 scenarios above, do you think it is a good idea for the company to make its system as an open source?

select 1 of the economic concentrations (clusters) below:

I picked: Hollywood movie industry

Complete the following in your paper:

Analyze how the economic concentration in the area you chose was influenced by competition and pricing.

Analyze how the economic concentration in the area you chose influenced the supply chain

Analyze which of the 4 factors of production were the most and least important in determining the economic concentration of the area you chose.

Predict changes you anticipate for the area of economic concentration you chose. Support your predictions.

Rocket Co. has just paid a dividend of $1.15 per share. The firm pays annual dividends. It is expected by analysts that the firm's earnings will grow by 8.2% per year over next six years. After that, the earnings will most likely grow at the current industry average of 5.5% per year. Analysts do not expect any changes in the payout ratio of the firm. The cost of capital is 12%. The today’s share price is closest to (nearest cents):

Select one:

a. $19.67

b. $21.30

c. $23.12

d. $20.51

Rocket Co. has just paid a dividend of $1.15 per share. The firm pays annual dividends. It is expected by analysts that the firm's earnings will grow by 8.2% per year over next six years. After that, the earnings will most likely grow at the current industry average of 5.5% per year. Analysts do not expect any changes in the payout ratio of the firm. The cost of capital is 12%. The today’s share price is closest to (nearest cents):

Select one: a. $19.67 b. $21.30 c. $20.51 d. $23.12

Based on the text reading and other materials used, explain when a manager would use cost-volume-profit analysis and sensitivity analysis. In addition to the discussion, suppose a company decided to automate a production line. Explain what effects this would have on a company's cost structure using CVP terminology. Could these changes have any possible negative effect on the firm?

One of the focuses of CVP analysis is breakeven analysis. Specifically, CVP analysis helps managers of firms analyze what it will take in sales for their firm to break even.

A research study in a big metropolitan area shows that 2% of individuals living within the city limits move to suburbs during one-year period while 1% of individuals living in the suburbs move to the city during a one-year period.

1. In a particular metropolitan area, 40% of the population lives in the suburbs. What population changes do your long run probabilities project for this metropolitan area?

2. A group of 100 individuals are now living in the city, how many of them will stay after 3 years.