Inventory cost is higher than all other options. If there are many small players at the customer stage, each requiring small amount of the product at a time.
Answer:
Amortizing loan.
Explanation:
Amortizing loan is the type where the principal and interest are paid in equal amounts till the loan is fully paid.
Usually payments are represented in an amortizing schedule. The payments are made up of part of the principal and the other part the interest paid together.
Jeff's loan of $275 monthly payments for 5 years is a form of amortizing loan.
Answer:
After tax real rate will be 2.2 %
So option (b) will be correct answer
Explanation:
We have given nominal interest rate = 8 %
Inflation rate = 5 %
And marginal tax = 10 %
We have to find the after tax real rate interest
After tax real rate of interest is given by
After tax real rate = nominal interest rate ( 1 - tax rate ) - inflation rate
= 8 ( 1 - 0.1 ) - 5 = 8×0.9 -5 = 7.2 - 5 = 2.2 %
So option (b) will be correct answer