An environmentally friendly 2 comma 400-square-foot green home (99% air tight) costs about 6% more to construct than a same-sized conventional home. most green homes can save 17% per year on energy expenses to heat and cool the living space. for a $249 comma 000 conventional home with a heating and cooling bill of $3 comma 500 per year, how much would have to be saved in energy expenses per year to justify this home (i. e., b-c ratio greater than or equal to one)? the discount rate is 12% per year, and the expected life of the home is 24 years.

For example, the upper right cell shows that if expresso advertises and beantown doesn't advertise, expresso will make a profit of $15 million, and beantown will make a profit of $2 million. assume this is a simultaneous game and that expresso and beantown are both profit-maximizing firms. if expresso decides to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if expresso decides not to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if beantown advertises, expresso makes a higher profit if it chooses . if beantown doesn't advertise, expresso makes a higher profit if it chooses . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? expresso will choose to advertise and beantown will choose not to advertise. expresso will choose not to advertise and beantown will choose to advertise. both firms will choose to advertise. both firms will choose not to advertise.