The author present information that suggests that there is little threat of new entrants in the retail industry

You have your own Internet business where you buy close-out stuff from stores and sell them on-line at a higher price. Your only cost is what you pay for the items and the shipping charge per item. Last year you bought and then sold 1,000 pieces. This year you expect to double that, at unchanged purchase and sale prices. Which of the following will be higher this year than last?

a) profits b) profit margin c) both d) neither

How many discount rates produce a zero NPV for this project?

Wilson Flannery is concerned that this project has multiple IRRs. Year 0 1 2 3 Cash flows ?50 100 0 ?50 a. One, a discount rate of 0 percent. b. Two, discount rates of 0 percent and 32 percent. c. Two, discount rates of 0 percent and 62 percent.