Complete the table below, adding the missing information for concentration units reduced and the marginal cost of concentration reduction for each source. Please write down any formulae you use. Suppose the goal of the regulator is to reduce total concentrations at the receptor by 7.25 units. What is the optimal concentration reduction from each source in order to achieve the total required reductions? Show how you arrive at your answer. What is the total abatement cost of emission reduction for each source? What is the economy-wide total abatement cost of achieving the target? What is the optimal tax rate for each source in order to achieve the required reductions? Show how you arrive at your answer. Does your answer in part c) make sense? Explain why. How is your solution to this problem different from a typical solution in a uniformly mixed pollutant problem?  Suppose that the regulator set a uniform tax of $3 per unit of emissions. How many emissions units would each source reduce under this policy? Would this policy achieve the target concentration reduction? Clearly show how you arrive at your answer. As an economist, which policy would you recommend: the non-uniform tax rate identified in part (d) or the uniform tax policy from part (g)? Justify your answer. Emmission Units Reduced Marginal Cost of Emissions Reduction Concentration Units Reduced Marginal Cost of Concentration Reduction Source 1: transfer coefficient= 1 1 2 ________ ________ 2 4 ________ ________ 3 6 ________ ________ 4 8 ________ ________ 5 10 ________ ________ 6 12 ________ ________ 7 14 ________ ________ Source 2: transfer coefficient= .75 1 2 ________ ________ 2 4 ________ ________ 3 6 ________ ________ 4 8 ________ ________ 5 10 ________ ________ 6 12 ________ ________ 7 14 ________ ________ Source 3: transfer coefficient= .5 1 2 ________ ________ 2 4 ________ ________ 3 6 ________ ________ 4 8 ________ ________ 5 10 ________ ________ 6 12 ________ ________ 7 14 ________ ________

Prepare a 3 slide presentation for the 2 economies assigned below. NAFTA vs European Union (world’s 2 largest economic entities)Research each economy assigned . Compare similarities and differences between your assigned countries/economies.Use tables and/or graphs to support your analysis of the following economic statistics/indicators of your 2 assigned economies through the most recent year available since 2009 (the trough of the last economic cycle). Whenever possible, plot the metric for both economies on the same chart.GDP per capita growth over timeEvaluate the reasons why the economic growth of the 2 economies/countries varied. Discuss how international trade influenced the strength of each economy. Discuss the role of value chains and value-added production.Analyze how the failure to use value-added trade measures distorts trade statistics. For example, Boeing and Airbus airliners, Apple iPad and iPhone production, and North American integrated auto and light truck manufacturing.Examine at least 2 industries that have provided each economy a comparative advantage in world trade.Cite at least 2 academically credible sources. Format your citations according to APA guidelines.

(21-1) Define      each of the following terms: Interest tax shields; value of tax shield Adjusted present value (APV) model Compressed adjusted present value (CAPV) model (21-2) Modigliani      and Miller assumed that firms do not grow. How does positive growth change      their conclusions about the value of the levered firm and its cost of      capital? Chapter 21: Mini-case on page 871 (complete parts A through E) Mini Case David Lyons, CEO of Lyons Solar Technologies, is concerned about his firm’s level of debt financing. The company uses short-term debt to finance its temporary working capital needs, but it does not use any permanent (long-term) debt. Other solar technology companies average about 30% debt, and Mr. Lyons wonders why they use so much more debt and how it affects stock prices. To gain some insights into the matter, he poses the following questions to you, his recently hired assistant. Who were Modigliani and Miller (MM), and what assumptions are embedded in the MM and Miller models? Assume that Firms U and L are in the same risk class and that both have EBIT=$500,000. Firm U uses no debt financing, and its cost of equity is rsU=14%. Firm L has $1 million of debt outstanding at a cost of rd=8%. There are no taxes. Assume that the MM assumptions hold. Find V, S, rs, and WACC for Firms U and L. Graph (a) the relationships between capital costs and leverage as measured by D/V and (b) the relationship between V and D. Now assume that Firms L and U are both subject to a 40% corporate tax rate. Using the data given in Part b, repeat the analysis called for in b(1) and b(2) using assumptions from the MM model with taxes. Suppose that Firms U and L are growing at a constant rate of 7% and that the investment in net operating assets required to support this growth is 10% of EBIT. Use the compressed adjusted present value (APV) model to estimate the value of U and L. Also estimate the levered cost of equity and the weighted average cost of capital. Suppose the expected free cash flow for Year 1 is $250,000 but it is expected to grow unevenly over the next 3 years: FCF2=$290,000 and FCF3=$320,000, after which it will grow at a constant rate of 7%. The expected interest expense at Year 1 is $80,000, but it is expected to grow over the next couple of years before the capital structure becomes constant: Interest expense at Year 2 will be $95,000, at Year 3 it will be $120,000, and it will grow at 7% thereafter. What is the estimated horizon unlevered value of operations (i.e., the value at Year 3 immediately after the FCF at Year 3)? What is the current unlevered value of operations? What is the horizon value of the tax shield at Year 3? What is the current value of the tax shield? What is the current total value? The tax rate and unlevered cost of equity remain at 40% and 14%, respectively.