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Company X is negotiating with Company B for a possible business activity on the trade of mobile phones which was a new business for both companies. Company X has sent its business proposal to Company B two weeks ago and Company B was not that satisfied. Representatives of both companies set a meeting place and negotiated face to face. During the negotiation, the CEO of Company X wants to break the ice by asking 1) "What do you think of our proposal?". In response, the CEO of Company B asks 2)"Do you mean that this is your complete proposal?". After a pose by both teams, the CEO of company X starts again by asking 3) "Can you tell us how you arrived at this opinion?". The CEO of Company B tries to avoid a direct answer and immediately brings its offer to the table. He then asks 4) "What is your feeling on our

proposal?". The team of Company X thought that the proposal of Company B was beyond their expectation and they start to negotiate the terms. Company B did not accept and was not flexible to the offers of Company X. After two hours of negotiations the CEO of Company X asks Company B 5)"Are you joking, do you mean that these are the only terms that you will accept?"

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Explain four distortions in communication of a negotiation. Please give an example for each distortion. (Each one is 10 points)

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The equipment for this process has an expected life of 10 years and a current cost of Sh.2 million At the and of the to years, it will be virtually worthless. For financial analysis, the company uses the straight line method of depreciation and an average tax rate of 40%. It has a required rate of return of 15%. REQUIRED: Compute the project's net present value (N.P.V). Compute the payback period and the accounting mate of return. Compute the internal rate of return (IRR). NV. Should this project be undertaken? Explain. Are there any other important matters that the company should consider in evaluating this project?The superintendent of a school district must decide whether to hire additional teachers. If she hires the teachers, the student-teacher ratio will drop by 2, and student performance will improve. Under the assumption that student performance is measured by a test score, she estimated a regression model using the test score as the dependent variable, and the student-teacher ratio as the independent variable. The intercept and the coefficient are estimated to be 800 and -8, respectively. If she hires additional teachers to reduce the ratio by 2, what would be its predicted effect on the test score? O a. The test score will decrease by 800 points. O b. The test score will increase by 792 points. O c. The test score will increase by 8 points. O d. The test score will decrease by 8 points. O e. The test score will increase by 16 points.At a concert, a survey was conducted that asked a random sample of 100 people their age and how many concerts they have attended last year. A regression model is estimated and the Excel output follows: df SS MS F Significant F Regression 1 91.11 91.11 144.86 0.00 Residual 98 61.64 0.63 Total 99 152.75 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept -3.11 0.36 -8.64 0.00 -3.82 -2.40 Age 0.12 0.01 12.04 0.00 0.10 0.14 Find the coefficient of determination (also known as R-square) of this regression. O a. 0.4570 O b. 0.5965 O c. 0.5044 O d. 0.2359 O e. 0.3533The capital asset pricing model (CAPM) is the most fundamental model for modern finance. It calculates the relationship between the market return and the return from an individual risky financial asset: Y=Bo+B1X+6, where Y is the financial asset's annual return and X is the annual market return (both measured in percentage). Bo can be interpreted as the risk-free return, By is the effect from the market condition. The residual & is the excess return over the market condition. Suppose that 80 and $1 are estimated to be 2 and 1.2, respectively. In a year, the market return was -5%, but the asset return was 0%. What is the estimated excess return for the asset in the year? O a. 3% Ob. 1% O c. 4% O d. 5% O e. 2%