A developer is offering a buy down loan whereby the interest rate will be bought down during the first 2 years of the mortgage. The rate for year 1 will be 6%; year 2, 7%; and years 3 through 30, the market rate of 8%. A buyer is considering purchasing one of the developer's new homes, which is priced at $300,000. The borrower expects to put down $60,000 and pay a 1% origination fee and 1 discount point at closing. a) Determine the borrower's before-tax effective borrowing cost assuming that the borrower will hold the mortgage for 8 years.
b) By what amount could the developer increase the selling price of the house?
Assume that the developer’s required rate of return is 12%.

Coca-cola was primarily known for its core competencies in marketing, bottling, and distributing aerated drinks. however, with the success of gatorade, coca-cola developed competencies in the development and marketing of its own sports drink, powerade. which of the following is true of coca-cola? a. it is leveraging existing core competencies to improve current market position. b. it is building new core competencies to protect and extend its current market position. c. it is redeploying and recombining existing core competencies to compete in markets of the future. d. it is targeting the chasm between the early adopter and early majority market segment.

Which activity is not allowed in a 3 compartment sink

Aeuropean aircraft producer has spent 15 years in developing a new aircraft that would potential threaten long-lasting boeing's dominance (monopoly) in the same class of aircrafts. the new european aircraft gets high marks on all performance measures except noise. because of the noise, the european producers management is concerned that the us government may impose restrictions which would forbid their aircraft to land in some of the american airports. without restrictions the estimated (present discounted) profit would be 125 million usd. with the restrictions the profit would only be 25 million usd. the chances of both outcomes are estimated to be 50-50. management must decide now whether to the cost of redesign program problem and a 60% chance it will fail. should the european aircraft producer start the noise redesign program if they do not have any redesign parts of the aircraft to solve the noise problem. is 25 million usd. there is a 40% chance that redesign will solve the noise additional information than mentioned above? draw the decision tree, indicate probabilities and outcomes of the events * imagine that the company could find out in advance the outcome of the u.s. government's e find the expected value of perfect information about the u.s. government's decision. decision. draw a new decision tree, indicate probabilities and outcomes of the events.