1)You own a painting from a famous artist. You can sell the painting yourself or you can have an art gallery sell it for you. You are likely to get a higher price for the painting if the gallery sells it for you because the gallery ________ the information cost of the painting and _________ its liquidity.

Group of answer choices

raises; increases

lowers; increases

lowers; decreases

raises; decreases

2)

You want to open an indoor rock-climbing gym, but are unsure of whether there is sufficient demand. You hire a marketing research firm for $100K to estimate the demand. The gym will cost $5 million to build and will generate $500K per year for 20 years. You estimate a discount rate of 10% for the gym project.

If you wanted to find the NPV of the gym you ________ include the $100k because it is a/an ___________ cost

Group of answer choices

should NOT; sunk cost

should; sunk cost

should NOT; opportunity

should; opportunity