Your marketing department does a survey of potential users and finds that these users place the following values on the two versions of your software. The number of home and commercial users are equal and you cannot distinguish between the two. The marginal cost of the software is zero and for the purpose of this question, assume there is one commercial user and one home user. Software Version Home User Commercial User Full Featured Version $170 $250 Basic Version $150 $200 If you sell the basic version for $150 and the full featured version for $199.00, how much will your profit be? a. $340.00 b. $349.00 c. $200.00 d. $250.00 e. $300.00

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u. s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht. a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?