A party in a contract that uses its bargaining power unfairly can render the contract unconscionable

Dunning's theory helps explain:

A. how firms try to match each other's moves in different markets to try to hold each other in check. B. the interdependence between firms in an oligopoly that leads to imitative behavior among the rivals. C. why a greenfield investment in a new facility is better than an acquisition of or a merger with an existing local firm. D. the problems associated with doing business in a different culture where the rules of the game may be very different. E. how location factors affect the direction of FDI.

Cheryl Peck purchased a computer network for her classroom. The computer network cost

$100,000. She estimates that she can charge $500 for one session in the classroom. Cheryl knows that enrollment will increase over time. She estimates 50 students the first year, 75 students the second year, 100 students the third year, and 150 students the fourth year. If her cost of capital is 12 percent, what is the approximate present value of the benefits? A) $187,500 B) $135,471 C) $119,156 D) Cannot tell without more information.