A firm is considering investing in a digital camera factory. The factory can be built instantly at a cost I, and can produce one camera forever, with no operating costs. The investment is assumed to be irreversible. Currently the price of the camera is $400 but it will change. With a given probability q the price will rise to $500, and with probability (1-q) will fall to $300. After that the price will remain at that level, higher or lower, forever. We assume that the risk over the future price of camera is unrelated to the rest of the economy, so cash flows can be discounted using the riskfree rate of interest. Take the interest rate to be 10%. Set I= $4000, and q = 0.5. Required:
a. Given those above values, should the firm invest now, or would it be better to wait a year and see how the price of cameras changes? How much is it worth to have the flexibility to make the investment decision next year, rather than having to invest either now or never?
b. If we think of this in another way, how high an investment cost I would the firm be willing to accept to have a fexible investment opportunity rather than an inflexible "now or never" one.
c. If the probability of change in price changes to q = 0.80, and the high price is now $425, and the low price is still $300, should the firm invest now, or would it be a better option to wait a year? Interpret your results.
d. Now suppose that the uncertainty over price increases. Assume that next period there is a probability q-0.5 of the price of cameras going up to $600, and the same probability of going down to $200, then would it be better to invest now or to wait? Interpret your results.
e. Based on the original conditions given in the question except that the investment I decreases to $2000, should the firm invest now or is it better to wait a year?

Before you begin to compose a message, you should conduct research to collect the necessary information. to avoid frustration and inaccurate messages, be sure to consider the receiver's position. which questions should you ask yourself before determining what and how to research?

“wonderful! not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well,” said kim clark, president of martell company. “our $11,150 overall manufacturing cost variance is only 3% of the $1,536,000 standard cost of products made during the year. that’s well within the 3% parameter set by management for acceptable variances. it looks like everyone will be in line for a bonus this year.” the company produces and sells a single product. the standard cost card for the product follows: standard cost card—per unit direct materials, 4.00 feet at $4.00 per foot $ 16.00 direct labor, 1.1 direct labor-hours at $13 per direct labor-hour 14.30 variable overhead, 1.1 direct labor-hours at $2.40 per direct labor-hour 2.64 fixed overhead, 1.1 direct labor-hours at $6.50 per direct labor-hour 7.15 standard cost per unit $ 40.09the following additional information is available for the year just completed: a. the company manufactured 20,000 units of product during the year. b. a total of 77,000 feet of material was purchased during the year at a cost of $4.25 per foot. all of this material was used to manufacture the 20,000 units. there were no beginning or ending inventories for the year. c. the company worked 24,000 direct labor-hours during the year at a direct labor cost of $12.50 per hour. d. overhead is applied to products on the basis of standard direct labor-hours. data relating to manufacturing overhead costs follow: denominator activity level (direct labor-hours) 19,000 budgeted fixed overhead costs $ 123,500 actual variable overhead costs incurred $ 64,800 actual fixed overhead costs incurred $ 120,900required: 1. compute the materials price and quantity variances for the year. (round standard price and actual price to 2 decimal places. indicate the effect of each variance by selecting "f" for favorable, "u" for unfavorable, and "none" for no effect (i. e., zero 2. compute the labor rate and efficiency variances for the year. (round standard rate and actual rate to 2 decimal places. indicate the effect of each variance by selecting "f" for favorable, "u" for unfavorable, and "none" for no effect (i. e., zero 3. for manufacturing overhead compute: a. the variable overhead rate and efficiency variances for the year. (round standard rate and actual rate to 2 decimal places. indicate the effect of each variance by selecting "f" for favorable, "u" for unfavorable, and "none" for no effect (i. e., zero b. the fixed overhead budget and volume variances for the year. (indicate the effect of each variance by selecting "f" for favorable, "u" for unfavorable, and "none" for no effect (i. e., zero

According to the philosopher immanuel kant, the right of employees to know the nature of the job they are being hired to do and the obligation of a company not to deceive them in this respect is mainly reflective of the basic right of . privac yb. free consentc. freedom of speechd. freedom of consciencee. first refusal