a. A company has been invited to invest $4 million in a partnership and receive a guaranteed total amount o of $10 million after 6 years. By corporate policy the MARR is always established at 2% above the cost of capital. The inflation rate during the 6 year is expected to average 4% per year. If the real interest rate paid on capital is 12% per year, is this investment economically justified

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)