Answer the questions 1&2

1. You are selling a product on commission, at the rate of $1,000 per sale. To date you have spent $800 promoting a particular prospective sale. You are confident you can complete this sale with an added expendi- ture of some undetermined amount. What is the maximum amount, over and above what you have already spent, that you should be willing to spend to assure the sale?
2. Neptune Biometrics, despite its promising technology, is having diffi- culty generating profits. Having raised $85 million in an initial public offering of its stock early in the year, the company is poised to intro- duce a new product, an inexpensive fingerprint door lock. If Neptune engages in a promotional campaign costing $55 million this year, its annual after-tax cash flow over the next five years will be only $1 mil- lion. If it does not undertake the campaign, it expects its after-tax cash flow to be