Martin manufacturing is considering two normal, equally risky, mutually exclusive, but not repeatable projects. martin's cost of capital is 10%. the two projects have the same investment costs, but project a has an irr of 15%, while project b has an irr of 20%. assuming the projects' npv profiles cross in the upper right quadrant, which of the following statements is correct? a. since the projects are mutually exclusive, the firm should always select project b. b. if the crossover rate is 8%, project b will have the higher npv. c. only one project has a positive npv. d. if the crossover rate is 8%, project a will have the higher npv. e. each project must have a negative npv.

Ange in supply or (ii) a movement along the supply curve. a. during a real estate boom that causes house prices to rise, more homeowners put their houses up for sale. b. many strawberry farmers open temporary roadside stands during harvest season, even though prices are usually low at that time. c. immediately after the school year begins, fewer young people are available to work. fast-food chains must raise wages, which represent the price of labor, to attract workers. d. many construction workers temporarily move to areas that have suffered hurricane damage, lured by higher wages. e. since new technologies have made it possible to build larger cruise ships (which are cheaper to run per passenger), caribbean cruise lines have offered more cabins, at lower prices, than before. 2. in the following three situations, the market is initially in equilibrium. after each event described below, does a surplus or shortage exist at the original equilibrium price? what will happen to the equilibrium price as a result? a. in 2010 there was a bumper crop of wine grapes. b. after a hurricane, florida hoteliers often find that many people cancel their upcoming vacations, leaving them with empty hotel rooms. c. after a heavy snowfall, many peop