1. Define economies of scale and economies of scope. Discuss why investments where these can be exploited will be more successful than investments where these are not present. 2. How sustainable is competitive advantage based on technology? On low cost labor? On economies of scale? 3. Discuss some of the common errors that are made while calculating WACC using CAPM. How can these be avoided? 4. What is sensitivity analysis and simulation analysis? Discuss in detail. 5. what is the differnce between levered and unlevered beta? 6. What is the hurdle rate? is it the same as the cost of capital? when can the cost of capital be used as the hurdle rate? 7. Can the firm use one rate to discount all projects? why or why not