IBM is investing $3 billion in a private-public partnership with New York State, GlobalFoundries, Samsung and equipment vendors,” to create ultradense computer chips (John Markoff, New York Times, July 9, 2015). TOTALLY MADE-UP SCENARIO: Suppose that during their affiliation, Samsung has paid IBM $200 million for creating a special version of these ultradense chips for Android products. Suppose further that the contract included certain requirements for size, speed and other qualities. Then suppose that after beta testing these chips, Samsung claimed that IBM’s efforts failed to live up to their contractual agreements. (2 points each: 1 for explaining the concept, and 1 for applying it correctly)   a. Was either party earning rent? What assumptions do you have to make to assert this?   b. Was either party earning quasi-rent? What assumptions do you have to make to assert this?   c. Could IBM have held up Samsung? And/or could Samsung have held up IBM? Explain.

Please help me with this question

Gadubhai

A company is considering two mutually exclusive expansion plans. Plan A requires a $40 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.39 million per year for 20 years. Plan B requires a $15 million expenditure to build a somewhat less efficient, more labor-intensive plant with an expected cash flow of $3.36 million per year for 20 years. The firm's WACC is 9%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Calculate each project's NPV. Round your answers to two decimal places. Do not round your intermediate calculations. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Plan A: $ fill in the blank million Plan B: $ fill in the blank million Calculate each project's IRR. Round your answer to two decimal places. Plan A: fill in the blank Plan B: fill in the blank By graphing…

38. A start-up company, Macrotech, plans to produce a device to translate Morse code to a written message on a home computer and to send written messages in Morse code over the airwaves. The device is primarily of interest to ham radio enthusi- asts. The president, Ron Lodel, estimates that it would require a $30,000 initial investment. Each unit costs him $20 to produce and each sells for $85. a. How many units must be sold in order for the firm to recover its initial investment? b. What is the total revenue at the break-even volume? c. If the price were increased to $100 each, find the break-even volume.

Leeds Limited is looking to expand its operations and increase its market share in the cell phone industry. To achieve this, they are looking to increase its current productive capacity of 100 000 cell phones a year by at least 6% for each of the next 5 years. It is considering two cell phone making machines and is unsure which to purchase: Cell Phone Machine ABC:Cell Phone Machine ABC can be imported at a landed purchase cost of R160 000 and a further R20 000 transport and installation costs will have to be incurred to get it ready for production. This machine is expected to last 5 years after which it will be sold at its scrap value of R20 000. Net cash flow from the sale of the additional production is expected to be R58 000, R63 000, R68 000, R72 000 and R51 000 respectively over the 5-year lifespan of the machine. This machine will enable Leeds Limited to achieve a 4% increase in productive capacity.Cell Phone Machine XYZ:Cell Phone Machine XYZ can be purchased locally for R190…