The conference board publishes data on business cycle indicators (bci). the composite index of leading economic indicators is one of the three components of the bci. changes in leading economic indicators usually precede changes in gdp. some of the variables tracked by the index are listed below. i. the average weekly hours worked by manufacturing workers ii. the average number of initial applications for unemployment insurance iii. the amount of new orders for capital goods unrelated to defense iv. the amount of new building permits for residential buildings v. the s& p 500 stock index vi. consumer sentiment examine each variable and explain whether it is likely to be positively correlated, negatively correlated, or uncorrelated with real gdp.

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?