Melissa sells a house to smith. before the sale is finalized, smith asks melissa for details of repairs the house has undergone over the years. melissa gives him details of minor repairs but hides all documents regarding a major plumbing defect that was repaired last year. three months after the smith moved in, the defect reappeared that caused the first floor to flood, damaging their expensive carpet and furniture. melissa is liable for which of the following frauds?
a. fraud by concealment.
b. fraud in the inducement.
c. fraud in the inception.
d. melissa is not liable because she already had the problem repaired.

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?