1. New entrants are more likely to join an industry if:
a. differentiation among existing competitors is high
b. access to distribution channels is limited
c. switching costs for consumers are low
d. capital requirements to enter the industry are high
e. expected retaliation from existing competitors is high
2. The compnay has a 12% required rate of return and expects a 3% rate of inflation for the following four years. What is the NPV of a project that has cash flows as shown
Year 0 -$250,000
Year 1 $50,000
Year 2 $60,000
Year 3 $70,000
Year 4 $80,000