Suppose that you were interested in building a new townhome community on the east side of university city that will be marketed exclusively to senior citizens above the age of 62. in your analysis of local demographics, you discover that the target market makes up only 10% (core market share) of the households that currently live in this city. if market experts believe that a total of 500 townhome (or similar condominium) units will be purchased in all of university city within the next year, what is the projected number of units the developer could expect to sell in year 1 if he is able to capture 40% of the market potential?
(a) 20 units
(b) 50 units
(c) 10 units
(d) 500 units

You want to make an investment in a continuously compounding account over a period of two years. what interest rate is required for your investment to double in that time period? round the logarithm value and the answer to the nearest tenth.

The management of a private investment club has a fund of $250,000 earmarked for investment in stocks. to arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high risk (x), medium risk (y), and low risk (z). management estimates that high risk stocks will have a rate of return of 15%/year; medium risk stocks, 10%/year; and low risk stocks, 6%/year. the amount of money invested in low risk stocks is to be twice the sum of the amount invested in stocks of the other two categories. if the investment goal is to have a rate of return of 9% on the total investment, determine how much the club should invest in each type of stock. (assume that all the money available for investment is invested.)

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.