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sp2606 [1]
3 years ago
14

Firm has three different investment options, each costing $10 million. option a will generate $12 million in revenue at the end

of one year. option b will generate $15 million in revenue at the end of two years. option c will generate $18 million in revenue at the end of three years. which option should the firm choose?
Business
1 answer:
LekaFEV [45]3 years ago
7 0
Option a in order to get highest profit a year
a: 12 million a year
b: 15 ÷ 2 = 7.5 million a year
c: 18 ÷ 3 = 6 million a year.
to get most revenue, option a is the best choice
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Answer:

The answers are:

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When a company may need money in a short notice (like auto insurers), they will need to make liquid investments. That means that they can turn their investments into cash very rapidly. Since T-bills are traded all the time, they are very liquid investments, although they aren't very lucrative investments.

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A tenant rented an apartment, signing a 15-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold goes the tenant have holdover tenancy

A holdover tenant is a tenant who continues to occupy a rental after the lease has ended. The holdover tenant can continue to occupy the property legally if the landlord accepts rent payments; the length of the holdover renter's new rental term is determined by state legislation and court decisions. The tenant is seen to be trespassing if the landlord refuses to accept any additional rent payments, and if they do not leave right away, an eviction may be required.

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Learn more about holdover tenancy here

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<u>Information asymmetry.</u>

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