Ritz products's materials manager, tej dhakar, must determine whether to make or buy a new semiconductor for the wrist tv that the firm is about to produce. four million units are expected to be produced over the life cycle. if the product is made, start-up and production costs of the make decision total $3 million, with a probability of 0.5 that the product will be satisfactory and a 0.5 probability that it will not. if the product is not satisfactory, the firm will have to reevaluate the decision. if the decision is reevaluated, the choice will be whether to spend another $3 million to redesign the semiconductor or to purchase. likelihood of success the second time that the make decision is made is 0.7. if the second make decision also fails, the firm must purchase. regardless of when the purchase takes place, dhakar's best judgment of cost is that ritz will pay $0.50 for each purchased semiconductor plus $2 million in vendor development cost.
a) assuming that ritz must have the semiconductor (stopping or doing without is not a viable option), what is the best decision?

On july 1, 2016, killearn company acquired 103,000 of the outstanding shares of shaun company for $21 per share. this acquisition gave killearn a 40 percent ownership of shaun and allowed killearn to significantly influence the investee's decisions. as of july 1, 2016, the investee had assets with a book value of $6 million and liabilities of $1,468,500. at the time, shaun held equipment appraised at $140,000 above book value; it was considered to have a seven-year remaining life with no salvage value. shaun also held a copyright with a five-year remaining life on its books that was undervalued by $562,500. any remaining excess cost was attributable to goodwill. depreciation and amortization are computed using the straight-line method. killearn applies the equity method for its investment in shaun. shaun's policy is to declare and pay a $1 per share cash dividend every april 1 and october 1. shaun's income, earned evenly throughout each year, was $580,000 in 2016, $606,600 in 2017, and $649,200 in 2018. in addition, killearn sold inventory costing $93,000 to shaun for $155,000 during 2017. shaun resold $97,500 of this inventory during 2017 and the remaining $57,500 during 2018.a. determine the equity income to be recognized by killearn during each of these years. 2016 2017 2018b. compute killearn’s investment in shaun company’s balance as of december 31, 2018.

Gwen, a manager at exude apparels inc., received a message from a customer requesting a replacement for a purchased pair of shoes. exude apparels has a clearly stated no-return policy. gwen responded to the customer denying the request in a tactful and clear manner. despite this, the customer submitted a second request. in this scenario, which of the following is an appropriate response to the second request?

Determine if the following statements are true or false. an increase in government spending can crowd out private investment. an improvement in the budget balance increases the demand for financial capital. an increase in private consumption may crowd out private investment. lower interest rates can lead to private investment being crowded out. a trade balance in sur+ increases the supply of financial capital. if private savings is equal to private investment, then there is neither a budget sur+ nor a budget deficit.