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deff fn [24]
3 years ago
7

In 1985, Alice paid $20,000 for an option to purchase ten acres of land. By paying the $20,000, she bought the right to buy the

land for $100,000 in 1992. When she acquired the option in 1985, the land was worth $120,000. In 1992, it is worth $110,000. Should Alice exercise the option and pay $100,000 for the land?
Business
1 answer:
nata0808 [166]3 years ago
8 0

Answer:

Alice should exercise the option and pay $100,000 for the land.

Explanation:

As Alice has paid $20,000 for the option to acquire the land of ten acres.

In 1985, the worth of land was $120,000 but in 1992, the worth changed to $110,000. She should exercise the option because the inflation rate is the reason in the decrease in the worth of land. By buying the land, she can utilize the land by investing in it instead of holding the money as it will depreciate. By investing the money, she will get the profit and will increase in her wealth. Moreover, she can use other options by selling to another person after adding some value to the land and can get the profit.

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If households and firms increase the level of private savings because they become pessimistic about the future, then:
Margarita [4]
<span>If people are saving their money because of pessimistic feelings about the future then it will have an impact on current spending in the economy. When people are saving instead of investing money or purchasing large items such as homes or vehicles than the businesses in those markets are affected. For example, if there is no one buying new houses, then builders will see a decrease in work and the companies that provide building supplies will be affected. The people in the companies will also begin spending less as there is less work and less money to go around which also affects the economy on a large scale.</span>
8 0
3 years ago
Which contingency of power are unions mainly applying by going on strike at a critical time in the company's business cycle
Ksivusya [100]

Answer:

Centrality

Explanation:

By going on strike at a critical time in business cycle the contingency of power is centrality. Centrality is the degree and nature of power of interdependence that exists between between the the person holding power and others. Centrality determines the number of people who are affected by the decisions made by the person holding power.

5 0
3 years ago
Claire wanted to tell her employees about the seminar, but she put the flier in a stack of papers and forgot about it until afte
neonofarm [45]

Claire wanted to tell her employees about the seminar, but she put the flier in a stack of papers and forgot about it until after the deadline, so none of her employees were able to sign up for the seminar. What type of barrier has occurred in this situation?

The barrier to communication that occurred in this situation is sender barrier.

A communication barrier is anything that prevents someone from receiving and understanding messages including information, ideas and thoughts. Since Claire did not let her employees know about the seminar, they had no way to know that the seminar was going on and that they were able to attend.  There was no information given from Claire, who was suppossed to be the sender of the information for her team.

6 0
3 years ago
"Lluvia Manufacturing and Paraguas Products both seek funding at the lowest possible cost. Lluvia would prefer the flexibility o
JulijaS [17]

Answer:

Paraguas should borrow at LIBOR + 2.000% and swap for fixed rate debt.

Lluvia should choose funding in floating rate

Explanation:

Paraguas wants the security of fixed rate borrowing; thus it should borrow at LIBOR + 2.000% and swap for fixed rate debt, in which Libor is 5.500%; their total cost at 7.5% is still lower than Fixed rate 12.0%

Lluvia prefer the flexibility of floating rate borrowing, and its rating is better; then it can enjoy lower cost of borrowing at 5%. However it may face the increase if LIBOR increase later; vice versa if LIBOR decrease, its cost of borrowing is able to reduce also.

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7 0
3 years ago
Suppose a​ student-athlete has the opportunity to earn ​$600,000 next year playing for a minor league baseball​ team, ​$100,000
mafiozo [28]

Answer:

it's 0

Explanation:

hes returning to college and making zero money

5 0
3 years ago
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