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masya89 [10]
3 years ago
8

Tanner is choosing between two​ mutually-exclusive investment options. These options have absolutely no​ risk, and Tanner can al

ways borrow and lend at the​ risk-free rate. Option 1. He can invest​ $500 now and get​ (guaranteed) $550 in one year. Option 2. He can invest​ $600 now and get​ (guaranteed) $631.40 back later today. Assume the​ risk-free interest rate is​ 3.5%. Which investment should Tanner​ prefer?
Business
1 answer:
Reika [66]3 years ago
5 0

Answer:

D) Tanner should be indifferent between the two investments, since both are equivalent to the same amount of cash today.

Explanation:

Here are the options to this question:

A) $531.40 later today, since $1 today is worth more than $1 in one year.

B) $550 in one year, since it is $50 more than he invested rather than $31.40 more than he invested.

C) Neither - both investments have a negative NPV.

D) Tanner should be indifferent between the two investments, since both are equivalent to the same amount of cash today.

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

For the first option:

Cash flow in year 0 = $500

Cash flow in year 1 = $550

I = ​ 3.5%

NPV = $31.40

For the second option:

NPV = $631.40 - $600 = $31.40

The npv of both options are equal and postive. So, Tanner should be indifferent between the options.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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Stells [14]

The explanation most likely accounts for the increase in the number of male butterflies after the initial parasite problem is that male butterflies in the population survived had a gene that made them resistant to the parasite, as well as the gene, that was passed to their offspring.

So, the correct option is C.

A population's size might alter due to the occurrence of new people or species. The total number of living things that are present in a given habitat is referred to as its population. The scenario indicates that there are now considerably more men in the population. The male butterflies in the population that survived earlier had a gene making them resistant to the parasite, and they passed the gene on to their offspring, leading to the number of males to be increased in the population.

This increase in the number of population growth of males can be explained by the fact that the male butterflies in the population that survived earlier had a gene making them resistant to the parasite, and they passed the gene to their offspring.

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The given question is incomplete. The complete question is:

A few years ago the population of male blue moon butterflies on the island of Samoa declined. One hypothesis for the decline of the male butterflies is that a parasite-infected the cells of female butterflies. The parasite was passed to offspring through the females’ eggs and killed the male butterfly embryos. At one point during the decline, nearly all the butterflies in the population were females, but after five years the number of males in the population increased significantly.

Which explanation most likely accounts for the increase in the number of male butterflies in the five years after the initial parasite problem?

A. Male butterflies in the population that survived were able to prey on the parasites living in the females’ egg cells.

B. Female butterflies in the population that survived had a genetic adaptation that allowed them to transform into male butterflies.

C. Male butterflies in the population that survived had a gene that made them resistant to the parasite, and they passed the gene on to their offspring.

D. Female butterflies in the population that survived were able to protect the male eggs from the parasite and provide extra care for the male offspring.

6 0
1 year ago
Severe folate deficiency in adolescence can result in:
gregori [183]
It can result in many different symptoms including extreme fatigue, mouth sores, gray hair, tongue swelling, and growth problems.
3 0
3 years ago
The list provided by the International Trade Administration to a potential exporter with the names and addresses of potential di
Marta_Voda [28]

Answer: Best prospects list

Explanation: The best prospects list is usually issued to potential exporters by the International Trade Organization which serves functions such as facilitating trade operations between countries by eliminating several trading issues such as negotiating and reducing trade tariff, regulating restrictive policies and also providing useful information necessary for successful trading to traders.

The provision of best prospects list offers firsthand information to potential traders about available and certified markets and distributor information which could facilitate ease of trading.

4 0
3 years ago
Soda and pizza are complements because they are often enjoyed together. When the price of soda rises, what happens to the supply
almond37 [142]

Explanation:

In the case of the complements goods, if the price of the soda rises, the demand would be decreased and the supply would rises. Since the soda and pizza are complementary goods so the impact of one good would be the same for another good also

Moreover, we also know that the price and the demand has an inverse relationship but the price and the supply has a direct relationship

6 0
3 years ago
A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly s
posledela

Answer:

exporting

Explanation:

The exporting refers to the trade in which the goods and services are produced and sold to the another country. In this, the person who sells the goods and services is known as exporter while the foreign buyer who buyed the goods and services is known as importer

According to the given situation, the company is looking for growth opportunities and it is a fairly small company. Moreover it focused on exporting the goods and services

Hence, the option C is correct

5 0
3 years ago
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