For every true terrorist uncovered, the NSA would incorrectly flag 475,50014 innocent American residents. With the NSA budget of $5 million per terrorist ($5 billion divided by 1,000) and a follow-up cost of $30,000 per accused, the marginal cost per real terrorist is over $14 billion, which is far above the marginal value per terrorist of $100 million.

Kinkead inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be −$10 million, but its fcf at t = 2 will be $20 million. after year 2, fcf is expected to grow at a constant rate of 4% forever. if the weighted average cost of capital is 14%, what is the firm's value of operations, in millions?

He taylor company sells music systems. each music system costs the company $100 and will be sold to the public for $250. in year one, the company sells 100 gift cards to customers for $250 each ($25,000 in total). these cards are valid for just one year, and company officials expect them to all be redeemed. in year two, only 96 of the cards are returned. what amount of net income does the company report for year two in connection with these cards? a. $15,000b. $15,400c. $15,500d. $15,800

The larger the investment you make, the easier it will be to: get money from other sources. guarantee cash flow. buy insurance. streamline your products.