"ComSec Corp. is planning on introducing a new smartphone to the market. The company is deciding between the following two options: Option 1: Rush the smartphone to market by paying overtime and speeding up testing. The company will pay $7.5 million initially and will receive $4.3 million in annual profit from the smartphone during the first year. During years 2 through 5, the annual profit from the smartphone will decrease by $540,000 from the previous year. The smartphone will be obsolete by year 6 so the profit in year 6 and beyond is $0. Option 2: Move more slowly in getting the smartphone to market. In this option, the company pays $1 million initially and $1 million in the first year. Since the smartphone is introduced to the marker later than with option 1, the company will earn less revenue with option 2. The company will earn an annual profit of $2.24 million in year 2. In years 3 through 5, the annual profit from the smartphone will decrease by $180,000 from the previous year. The smartphone will still be obsolete by year 6 so the profit in year 6 and beyond is $0. At what MARR would the company be indifferent between the two options

Your take on decision making process

Martha entered into a contract with terry, an art dealer. according to the contract, terry was to supply 18 th century artifacts to martha for the play she was directing, and martha was ready to pay $50,000 for this. another director needed the same artifacts and was ready to pay $60,000. terry decided not to sell the artifacts to martha. in this case, the court may order terry to:

Blue computers, a major pc manufacturer in the united states, currently has plants in kentucky and pennsylvania. the kentucky plant has a capacity of 1 million units a year and the pennsylvania plant has a capacity of 1.5 million units a year. the firm divides the united states into five markets: northeast, southeast, midwest, south, and west. each pc sells for $1,000. the firm anticipates a 50 perc~nt growth in demand (in each region) this year (after which demand will stabilize) and wants to build a plant with a capacity of 1.5 million units per year to accommodate the growth. potential sites being considered are in north carolina and california. currently the firm pays federal, state, and local taxes on the income from each plant. federal taxes are 20 percent of income, and all state and local taxes are 7 percent of income in each state. north carolina has offered to reduce taxes for the next 10 years from 7 percent to 2 percent. blue computers would like to take the tax break into consideration when planning its network. consider income over the next 10 years in your analysis. assume that all costs remain unchanged over the 10 years. use a discount factor of 0.1 for your analysis. annual fixed costs, production and shipping costs per unit, and current regional demand (before the 50 percent growth) are shown in table 5-13. (a) if blue computers sets an objective of minimizing total fixed and variable costs, where should they build the new plant? how should the network be structured? (b) if blue computers sets an objective of maximizing after-tax profits, where should they build the new plant? how should the network be structured? variable production and shipping cost ($/unit) annual fixed cost northeast southeast midwest south west (million$) kentucky 185 180 175 175 200 150 pennsylvania 170 190 180 200 220 200 n. carolina 180 180 185 185 215 150 california 220 220 195 195 175 150 demand ('000 units/month) 700 400 400 300 600