Here is the answer that best completes the statement above. According to the given text, when you are thinking about your "academic anatomy", this preference is a way to get a handle on what you feel satisfying and fulfilling. Hope this helps.
Answer:
Substantially all of the fair value of the asset
Explanation:
A lease is a contractual arrangement by which a lessor provides a lessee the right to use an asset for a specified period of time.
A financial leases is when a lessee has, in substance, purchased the lease asset, assumed when one of five classification is met. which are
1. The agreement specifies that ownership of the asset transfer to the lessee
2. The agreement contains a purchase option that the lessee is reasonably certain to exercise (bargain purchase option)
3. The lease term is for "major part" of the remaining economic life of the underlying asset.
4. the present value of the lease payments equals or exceeds "substantially all" of the fair value of underlying asset.
5. The underlying assets is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.
Answer:
Answer is 12.64%. Therefore,
Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a risky portfolio with a standard deviation of 24% only if the risky portfolio's expected return is at least 12.64%.
Refer below for the explanation.
Explanation:
E - 4%= 0.5(3)(24%)2
E=12.64%
Answer: B) Only materials costs are relevant
Explanation:
When choosing between alternatives, the main decider is the difference in costs. The costs that are different are the ones to decide whether a company takes on a project as it will signal the financial viability of a project.
In both alternatives, the Processing costs remain at $37,000 therefore the alternative chosen is irrelevant to these costs as they will be incurred regardless of the company's choice. They are therefore not to be considered.
Material costs on the other hand vary by the alternatives and so should be considered.