Hi, I need help solving the attached problems. Thanks!

1. Baker Enterprises operates a midsized company that specializes in the production of a unique type of memory chip. It is currently the only firm in the market, and it earns $10 million per year by charging a higher price of $115 per chip. Baker is concerned that a new firm might soon attempt to clone its product. If successful, this would reduce Baker's profit to $4 million per year. Estimates indicate that, if Baker lowers its price to $90 per chip, the entrant will stay out of the market and Baker will earn profits of $5 million per year for the indefinite future. a. Does it make sense for Baker to limit price if the interest rate is 10 percent? b. What is the lowest amount of profit Baker would need when limit pricing to make this strategy profitable? 2. Baker decided not to pursue limit pricing as described in the previous problem. Now they find themselves with a competitor, which limits their profit to $4 million per year. However, if Baker drops its price to $68 per chip and holds it there for one year, it will be able to drive the other firm out of the market and regain its market power (earnings $10 million per year in profit as described in the previous problem). Over the year in which it engages in predatory pricing, however, Baker will lose $60 million. a. Ignoring legal considerations, is predatory pricing a profitable strategy? Assume the interest rate is 10 percent and, for simplicity, that any current period profits or loses occur immediately (at the beginning of the year). b. What if the interest rate were 5 percent instead of 10