BUSI W7 DB Paper - Managerial Economics

Order Description Overview The focus of this lesson is to extend the basic model of the firm to include both domestic and international risks and to deal with economics of information. It examines capital budgeting (or process by which firms make decisions involving costs and giving rise to revenues over a number of years), foreign capital inflows, and the cost of capital in the U.S. Learning Outcomes Upon successful completion of this module, you will be able to: ? Apply risk analysis in decision making. ? Understand information and risk. ? Understand capital budgeting process. ? Estimate the cost of capital. In 550-word count, answer the following questions: A firm is considering 2 capital investment projects. Project A involves an initial cost of $125,000. The discounted present value of all future cash flows is $145,000. Project B requires an initial expenditure of $85,000. The discounted present value of all future cash flows is $102,000. ? Calculate the net present value of each of the 2 projects. Which would be preferred according to the net present value criterion? ? Calculate the profitability index of each of the 2 projects. Which would be preferred according to the profitability index criterion? 1. Do you think the interest on payday loans is too high or just right? Should Christians charge poor people interest on loans? Additional information: ? "Now in case a countryman of yours becomes poor and his means with regard to you falter, then you are to sustain him, like a stranger or a sojourner, that he may live with you. Do not take usurious interest from him, but revere your God, that your countryman may live with you. You shall not give him your silver at interest, nor your food for gain" (Leviticus 25:35?37, NIV). ? Search the internet for "Microloans" or "Microcredit" and review the interest charged on these loans. The paper must fully meet the following: ? The prompt must fully addressed/answered in the thread. ? The thread is at least 550 words (excluding the title and references pages) ? References at least three peer-reviewed sources (published with the last four years) and one biblical integration ? Provide integration of a biblical concept that supports the paper. Biblical integration is more than just quoting a verse. Be sure to explain the biblical principle seen in the verse and how that principle may be applied to the issue at hand. ? The Bible, NIV, KJV, and NKJV are all acceptable for use in this order. ? All sources are cited in current APA format. ? Proper spelling and grammar are used. ? Sentences are complete, clear, and concise