Ginny and Lucia are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Ginny takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Lucia takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza.1. Cho's opportunity cost of brewing a gallon of root beer is:a. 2/3 pizza; b. 5/7 pizza; c. 1 1/2 pizzas; d. 1 2/5 pizzas, 2. and Ginny's opportunity cost of brewing a gallon of root beer is: a. 2/3 pizza; b. 5/7 pizza; c. 1 1/2 pizzas; d. 1 2/5 pizzas.

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?