Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. these wastes flow downstream into a lake that has become thick with algae and polluted due to the minerals in the waste matter. the local office of a nonprofit environmental organization collects enough donations to stop the farm's pollution.
which of the following types of private solutions to the externality of pollution has occurred in this case?
(contacts, moral codes and social sanctions, integration of different types of businesses through merger or acquisition)
it’s important to note that sometimes private solutions to externalities do not work. for example, this occurs when the number of parties involved is so large that it
(government action the only viable solution, the market failure from the externality unimportant, coordinating negotiations among all of the parties too costly)

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)