The Uniform Computer Information Transaction Act (UCITA) does not permit click-wrap agreements to contracts

A small manufacturer builds wooden pleasure boats in a craftsman manner by traditional labor-intensive methods. The first boat is estimated to take 650 hours of skilled labor, which cost $40 per hour

They currently have three workers that can work 2,000 hours a year. They assume that there is a 90% learning curve. How many boats can they build in their first year?

Goodweek Tire, Inc, has recently developed a new tire, the SuperTread, and must decide whether to make the investment. The research and development costs so far total $10 million

Market research (costing $5 million) shows that there is significant demand for a SuperTread type tire. The SuperTread will be produced and sold for the next two years. Goodweek Tire must initially invest $120 million in production equipment. This equipment can be sold for $51,428,571 at the end of two years. The equipment is classified as 15-year property for depreciation purposes. The SuperTread is expected to sell for $45 per tire. The variable cost for each SuperTread is $15. Analysts expect automobile manufacturers to build five million new cars this year and for production to grow 2.5% in the following year. Each new car needs four tires. Goodweek Tire expects the SuperTread to capture 10 percent of the market. Assume that revenues and expenses occur at the end of each of the two years of production. Working capital is equal to 15% of sales. Investments in working capital are made at the beginning of each year. Assume a tax rate of 40%. At the end of the terminal year, the working capital is liquidated. What is the NPV for the proposed acquisition if the cost of capital is 7.64%? MACRS Depreciation Rates Year 10-Year 15-Year 1 10.00% 5.00% 2 18.00% 9.50% 3 14.40% 8.55% A) $11.6M B) $11.8M C) $12.0M D) $12.2M E) $12.4M