What is the before tax effective cost of funds for a $100,000 loan at 5.00 percent interest, with monthly payments amortized over 25 years if the lender charges 2 points at origination and the borrower will incur $2,700 in third party loan costs? Assume the loan is outstanding for the full loan term which is ten years.

1 5.00%

2 5.69%

3. 7.51%

4. 6.00%

1. An engineering project involves the purchase of a capital asset with first cost of $100 000, operating costs of $5 000 per year and a service life of 10 years. The expected revenue is $20 000 per year. If the CCA rate is 25%, interest rate is 10% and the corporate tax rate is 33%, what is the project's present worth?

53. What are the three primary constraints in project management?

-A Schedule, cost, and deadline -

B Outsourcing, sponsors, and budget -

C Time, scope, and resources -

D Testing, accptance, and operation -

-54. Which document outlines participation by various roles in a project?

-A Communication plan

B- PERT chart -

C Responsibility matrix

D Gantt chart

55. The relationship among the variables of the triple constraints is such that if any one variable changes, at least one other is likely to be affected. What is considered the sciense of making trade-offs between these variables?

- Project assumption

- Moore's law

- Risk management

- Project management --

56. What allows a project manager to close a project before it has been completed?

- Budget overrun

- Kill switch

- Stop date

- Project constraint

when a firm faces a market price that is between the minimums of average total cost and average variable cost, which of the strategies should it choose?

a. continue to produce and sell output because it will maximize its economic profit

b. produce nothing and shut down the business

c. produce nothing and keep the business

d. continue to produce and sell output because it will minimize its economic loss

Suppose the market price is $10 (this is also the firm's marginal cost), a firm's quantity sold is 11, and the average total cost for the firm at that price is $7. What is the firm's profit?

A firm produces a product in a competitive industry and has a total cost function TC = 50 + 4Q +2Q² and MC = 4 + 4Q. At the given market price of $20, the firm is producing 5 units of output. Is the firm maximizing profit ? What quantity of output should the firm produce in the long run?

1. Assume the following cost data for XYZ industries, a firm that participates in a perfectly competitive market.  Use this data to answer the following questions.

1. Fill in the Total Cost and Marginal Cost data above.

2. If price is $56 then what level of output would maximize profit?  What would profit be?

3. If price is $41 then what level of output would maximize profit?  What would profit be?

4. If price is $32 then what level of output would maximize profit?  What would profit be?

5. Fill in the following information, and assume XYZ industries is the typical firm in the market:

Assume a competitive firm faces a market price of

​$60​, a cost curve​ of: C​ = 0.003q³​+ 50q ​+ 1000​,

The​ firm's profit-maximizing output level is ___ units ​(enter your response rounded to two decimal places​), and the per unit profit at this output level is ​$____ ​(enter your response rounded to two decimal places—include the minus sign if necessary).

This firm will▼ _______ (shut down or produce) in the​ short-run. The firm will realize▼________(economic profit or economic loss)​ , and ▼ ______ (must or may or may not) have a business profit.

In the​ long-run, if circumstances do not​ change, this firm will ▼_______ (shut down or produce).

The following table shows the cost information for a product at the 15,000-units level. Use the table to answer these questions: What are the incremental and marginal costs for producing 5,000 additional units? Suppose that, at a new production level of 30,000, the fixed cost increases to $3 million, what are the incremental and marginal costs for the additional 10,000 units? All cost figures are in dollars. Calculate [USING EXCEL]

If the price is less than the average total cost but higher than the average variable cost, then the firm is making a _________.

a. loss and is making a negative contribution to fixed costs

b. loss but will continue to produce in the short-run

c. loss and will shut down in the short-run

d. profit

What two types of market scopes did Michael Porter use in developing his generic strategies model?

Broad and narrow.

Cost leadership and focus.

Benefit leadership and focus.

Cost leadership and benefit leadership.

Assume firm 1 but not firm 2 is contemplating making a strategic commitment. Fudenberg and Tirole call it a ________ if the tactical variables are _______ and the commitment makes firm 1 __________.

a. lean and hungry look; strategic complements; soft

b. puppy-dog ploy; strategic complements; tough

c. fat-cat effect; strategic complements; tough

d. top-dog; strategic substitutes; soft