Woz enterprises specializes in electrical components. the market for one particular component is perfectly competitive and in long run equilibrium. the marginal cost is constant at 30. woz can develop a much cheaper process for producing this component, lowering its marginal cost to 10. the r& d cost of developing the new process would be f and woz would be able to obtain a patent for it and become a monopoly supplier of this component. demand for the product over the relevant period is given by pequals50minus2q. suppose the cost of the investment is fequals140 and that the government waits until woz works out the new process and then changes patent rules, requiring woz to charge a price no greater than $12. does woz stay in business?

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?