Find NPV of each project: Note: NPV= (PV of CF)-( Cost)Project A: Given: PMT=45,000; N =
5 ; I = 10% -> Find: PV = 173,997 -> NPV = 173,997-150,000 = 23,997Project B: Given: PMT=162,912; N
= 5; I = 13% -> Find: PV = 572,999 -> NPV = 572,999-570,000 = 2,999Since the projects are mutually exclusive, the optimal choice would be to choose the project with the higher NPV, Project A

In a perfectly competitive market, while the demand curve facing the industry is downward sloping, the demand curve facing an individual firm is perfectly elastic, i.e., horizontal.

Operating and trade liabilities, and advances from customers are consequences of operating activities.

Based on the data given, we should use the t-distribution. The critical value will be based at t_(0.10, 20), and is 1.325. Our confidence interval will then be
0.5 0.5
[-25% - 1.325*(10%)/(21 ), -25% + 1.325*(10%)/(21 )] = [-28%, -22%]

Since the cross price elasticity of demand for Snapple's drinks and Nantucket Nectar's drinks is positive, they are substitutes.