Alpha electronics can purchase a needed service for 90 per unit. the same service can be provided by equipment that costs $100,000 and that will have a salvage value of zero at the end of 10 years. annual operating costs for the equipment will be $7,000 per year plus $25 per unit produced. marr is 12 percent/year. a. based on a future worth analysis, should the equipment be purchased if the expected production is 200 units/year? b. based on a future worth analysis, should the equipment be purchased if the expected production is 500 units/year? c. determine the breakeven value for annual production that will return marr on the investment in the new equipment.

Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game.expert answer