Suppose the demand functions for two products are q1 = f(p1, p2) and q2 = g(p1, p2) where p1, p2, q1, and q2 are the prices (in dollars) and quantities for products 1 and 2. Consider the four partial derivatives ∂q1/∂p1, ∂q1/∂p2, ∂q2/∂p1 and ∂q2/∂p2, State the sign of each of these partial derivatives if: (a) the products are complementary goods (b) the products are substitute goods.

Hydro Ottawa has two options for upgrading a natural gas power station to meet new government standards. Option 1: Hydro Ottawa will make the upgrades themselves. This is expected to cost $12,700 at the end of each month for 12 years. At the end of the operation (in 12 years) Hydro Ottawa expects to sell all equipment needed for the upgrade for $122,000. Option 2: Pay experienced contractors. This will cost $28,000 up front and $13,900 monthly (at the end of every month) for 15 years. Assume all interest is 3.72% compounded monthly. Round the answers to NPV (Option 1), and NPV (Option 2) to the nearest dollar. Round all other answers to two decimal places where applicable. 1) Find the net present value of option 1: P/Y = C/Y = N = I/Y = PV = PMT= FV = Payments (Cost) GA % Sale of equipment (Residual) GA GA LA %

Options have a unique set of terminology. Define the following terms: (7) Time value

The correct formula to calculate the future value (FV) of a present value (PV) when simple interest is used is? Note: N would be number of periods and i would be the interest rate. A. FV = PV X (1+i)^N, where^ represents power B. FV = PV X (1+i)^-N, where^ represents power O C. FV = PV/((1+i) X N) D. FV = PV x (1 + (N x i)) Reset Selection Mark for Review What's This? The correct formula to calculate the future value (FV) of a present value (PV) when simple interest is used is? Note: N would be number of periods and i would be the interest rate. A. FV = PV X (1+i)^N, where^ represents power OB. FV = PV X (1+i)^-N, where^ represents power C. FV = PV /((1+i) x N) D. FV = PV x (1 + (N X i)) Reset Selection Mark for Review What's This?

The NPV profile: O A. shows the payback period the point at which NPV is positive. O B. shows the internal rate of return the point at which NPV is zero. OC. shows the NPV over a range of discount rates. O D. B and C are correct.

Define dollar-value LIFO (DVL) and explain its advantages.

Identify two advantages of dollar-value LIFO compared with unit LIFO.

Expected return is best described as ________________________________ and is based on the single word ___?

Which of the following equations is used to compute the future value using continuous compounding? OFV_-ex PV OFV_=PVxelxn OFV_=e+ PV OFV-PV+exn