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Task 1

Question 1: What is an opportunity cost rate? How is this rate used in discounted cash flow analysis, and where is it shown on a timeline? Is the opportunity rate a single number that is used to evaluate all potential investments?

Question 2: An annuity is defined as a series of payments of a fixed amount for a specific number of periods. Thus, $100 a year for 10 years is an annuity, but $100 in Year 1, $200 in Year 2, and $400 in Years 3 through 10 does not constitute an annuity. However, the entire series does contain an annuity. Is this statement true or false?

Question 3: If a firm's earnings per share grew from $1 to $2 over a 10-year period, the total growth would be 100%, but the annual growth rate would be less than 10%. True or false? Explain.

Task 2

Think of the business you have chosen for your final project and imagine that you are the top manager who has the responsibility to conduct an external analysis. In 200-250 words, explain the factors would you consider the most important to focus on and why. Please be specific. Business is Starbucks

Task 3

Today, there is a great debate going on in the country over the proper role of government.  In many ways, this is the centerpiece of the 2020 presidential election.  The two political parties are more sharply divided on this issue than at any time since the civil war.  The Democrats envision a bigger government which can fight racial inequality and poverty, provide access to health insurance, reduce the cost of higher education, and protect the environment.  The Republicans envision a smaller government with lower taxes, less regulation, more freedom to choose private schools, and more personal responsibility.  

In your view, what is the appropriate role of government in American life?  Under what conditions should government act and when should problems be left to be solved by the private sector or individual citizens?   Put another way – what are public problems (those requiring government action) and what are private problems (those best address by the private sector)?

Related to this, should the standard for government action be different for the federal and state or local governments?  Are there things that are best dealt with in Washington DC?  And are there other things that should be left to the states?  If so, be specific about what should be reserved for what level of government?    Does the experience of dealing with the current pandemic, in which each state and many local governments set their own responses to the crisis, impact your thinking on this subject?