Lockheed Martin is increasing its booster thrust power in order to win more satellite launch contracts from European companies interested in new global communications markets. A piece of earth-based tracking equipment is expected to require an investment of $13 million. Annual operating costs for the system are expected to start the first year and continue at $0.9 million per year. The useful life of the tracker is 8 years with a salvage value of $0.5 million. Calculate the Annual Worth for the system if the corporate MARR is currently 12% per year.

Prepare a 1 page paper on one of the important financial decision making areas where business financial decision making techniques can be applied to assist individuals and families in making better personal financial decisions. Discuss how and/or why the selected area is an important financial decision making area and explain how the application of your selected business financial decision making technique can help individuals make better decisions and reach their financial goals.Consider the Simple Linear Model that predicts housing prices based on square feet. Can you think of another variable you can add that would extend this model. How about bed rooms? . Multiple regression. Regression between one dependent variable and two or more independent variables square feet 1300 1700 1900 2400 2250 1600 2700 4000 Bed Rooms 2 2 2 3 3 3 4 4 Price in kilo dollars 180 195 200 240 260 225 300 4001. Consider the simple linear model Yi = Bo + B1Xi + ui and let Z; be a binary instrumental variable for Xi. Show that the IV estimator B1,IV for B1 can be written as BLY - Y1 - Yo I - X1 - XO where Yo and Xo are the sample averages of Y, and X; over the part of the sample with Z; = 0, and Y1 and X1 are the sample averages of Y; and X; over the part of the sample with Z, = 1