1. Identify which force has contributed to the profitability of the concentrated producers 1) most positively and 2) most negatively. Explain your reasoning.
2. Nelson’s Industrial Supply is considering a project that has projected cash inflows of $5,600 a year for 5 years. The initial cost of the project is $20,000 and the required return is 13.25 percent. Should this project be accepted based on the profitability index criterion? Why or why not?