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You are planning to invest $300 in new equipment. The equipment will generate cost savings of $300 in year 1 and $400 in year 2. The salvage value at the end of year 2 is zero. The discount rate (cost of capital) is 25% a year. Compute the net present value (NPV) of this investment $400 O $700 O $496 $196 O $796 Samson Electronics sold 10 million units of its new cutting-edge smartphone at a price of $800. It recently found that the smartphone's battery can overheat and explode during charging due to a manufacturing defect. This defect affects just 0.1% of all units sold i.e., the remaining 99.9% are perfectly safe), but the company cannot determine which units are defective and which units are safe. What should Samson do? (select ALL correct answers) Issue a world-wide recall of the phone and replace the battery at the company's expense in all units sold world wide. The expected cost of a recall is $800 million Stop selling the phone in the US to avoid expensive lawsuits but keep selling the phone in countries with a weak legal system. The expected cost of lawsuits in these countries is negligible. Keep quiet about the defect to protect the Samson brand name. When a defective phone causes a fire, quietly settle the customer's lawsuit. The expected cost of lawsuits is $250 million Warn customers about the problem and advise them to buy additional fire insurance and to charge the phone in a bucket of sand to reduce the risk of a fire. Offer customers a Samson-brand bucket of sand at a discounted price of $25 plus shipping