Before the north american free trade agreement (nafta) gradually eliminated import tariffs on goods, the autarky price of tomatoes in mexico was below the world price and in the united states was above the world price. similarly, the autarky price of poultry in mexico was above the world price and in the united states was below the world price. as a result of nafta, the united states now imports tomatoes from mexico and the united states now exports poultry to mexico. how would you expect the following groups to be affected? mexican and u. s. consumers of tomatoes a. consumer surplus increases in both mexico and the united states. b. consumer surplus increases in mexico and decreases in the united states. c. consumer surplus decreases in both mexico and the united states. d. consumer surplus decreases in mexico and increases in the united states.

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)