Suppose you are trying to decide whether or not it makes sense to crash your project. You know that normal project duration and direct costs are 60 days and $125,000. You are worried, though, because you have a very tight delivery schedule and the customer has placed a severe penalty into the contract in the form of $5,000 in liquidated damages for every day the project is late after 50 days. After working with the cost accountant, you have generated the following table of project costs at different completion durations: Project Duration (in days) Direct Costs Overhead Costs Penalty Charges Total Costs
60 $125,000 $15,500 $50,000
57 140,000 13,000 35,000
54 175,000 10,500 20,000
51 210,000 8,000 5,000
Complete the table. How many days would you advise the project should be crashed? Why?

The risk-free rate is 7% and the expected rate of return on the market portfolio is 11%. a. calculate the required rate of return on a security with a beta of 1.92. (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. if the security is expected to return 15%, is it overpriced or underpriced?

True or false: on january 1, year one, the epstein corporation buys a plot of land with a four-story office building. the company believes the building is worth $1.9 million and has an estimated life of twenty years (with no anticipated residual value). the straight-line method is used. the land has an assessed value of $100,000. because the seller was interested in a quick sale, epstein was able to buy this land and building for $1.7 million. depreciation expense to be recognized in year one is $80,750.

Ajustification for job training programs is that they improve worker productivity. suppose that you are asked to evaluate whether more job training makes workers more productive. however, rather than having data on individual workers, you have access to data on manufacturing firms in ohio. in particu- lar, for each firm, you have information on hours of job training per worker (training) and number of nondefective items produced per worker hour (output). (i) carefully state the ceteris paribus thought experiment underlying this policy question. (ii) does it seem likely that a firm’s decision to train its workers will be independent of worker characteristics? what are some of those measurable and unmeasurable worker characteristics? (iii) name a factor other than worker characteristics that can affect worker productivity. (iv) if you find a positive correlation between output and training, would you have convincingly established that job training makes workers more productive? explain.