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Paraphin [41]
3 years ago
8

Lilly would like to start investing. What tools and services can she benefit from?

Business
1 answer:
zhenek [66]3 years ago
3 0
Lily can benefit both from investing her money in the bank and in insurance companies. The bank can be both a short and long-term investment where she could get her finances from in case she needs them, while insurance companies will become her long-term investment in case she needs finances for her other needs (i.e. health, travel, etc.).
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The builder of a new movie theater complex is trying to decide how many screens she wants. Below are her estimates of the number
DochEvi [55]

Answer:

<u>Part (a):</u>

Make a table showing the value of the marginal product for each screen from the first through the fifth:

<u>Solution: </u>

The answer is attached.

<u>Part (b):</u>  

How many screens will be built if the real interest rate is 5.5 percent?

<u>Answer:</u> 3 screens

<u>Part (c): </u>

How many screens will be built if the real interest rate is 7.5 percent?

<u>Answer:</u> 1 screen

<u>Part (d):</u>

How many screens will be built if the real interest rate is 10 percent?

<u>Answer:</u> 0 screens

<u>Part (e): </u>

If the real interest rate is 5.5 percent, how far would construction costs have to fall before the builder would be willing to build a five-screen complex?

<u>Answer:</u> $727,272.73(approx.)

Explanation:

Part (a):

Make a table showing the value of the marginal product for each screen from the first through the fifth:

Solution:

The solution is attached with working.

<u>Part (b):</u>

<u>How many screens will be built if the real interest rate is 5.5 percent?</u>

<u>Solution:</u>

3 screens

The interest cost of each screen = 5.5% x $1,000,000 = $55,000.

There are no other costs mentioned. The value of marginal product exceeds $55,000 for 3 screens.

Therefore, 3 screens should be built.

<u>Part (c): </u>

<u>How many screens will be built if the real interest rate is 7.5 percent?</u>

<u>Solution:</u>

1 screen

The value of the marginal product exceeds the interest cost (7.5% of $1,000,000, or $75,000) for only the first screen.

Thus, <u>one</u> screen will be built.

<u>Part (d):</u>

<u>How many screens will be built if the real interest rate is 10 percent?</u>

<u>Solution:</u>

0 screens

At 10% interest, the interest cost of a screen is $100,000, more than the value of the marginal product of even the first screen.

<u> </u>Thus, no screens will be built.

Part (e):

<u>If the real interest rate is 5.5 percent, how far would construction costs have to fall before the builder would be willing to build a five-screen complex?</u>

<u>Solution:</u>

The value of the marginal product of the fifth screen is $40,000. At an interest rate of 5.5%, building five screens is profitable only if 5.5% times the per-screen construction cost is no greater than $40,000.

<u>Financial cost per screen = real interest rate x construction cost of per screen </u>

$40, 000 = 5.5% x construction cost per screen Construction cost per screen  = $40,000 ÷ 5.5%

= $727,272.73(approx.)

<u></u>

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3 years ago
What does an invasion biologist study?<br> help me
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Answer:

Invasion biology deals with invasive species. If an “invasive” species is defined as a species that spreads to the detriment of economic interests and public health, however, invasion biology could not be easily distinguished from pest management and public health sciences.

Explanation:

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A market mix is the blending of four marketing elements product, distribution price and promotion
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A _____________ strategy entails an organization developing a product and/or service that offers unique attributes that are valu
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The title to the goods passes to Pipes & Culverts when Pipes & Culverts Company picks up the six irrigation pumps that it ordered from Qualiity Plumbing, Inc.
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