Answer:
Bounded rationality.
Explanation:
Bounded rationality is the possibility that in decision-making, rationality of people is restricted by the data they have, the subjective impediments of their psyches, and the limited measure of time they need to settle on a decision.
Answer:
Option (B) If the market rate of interest is 10%, the bonds will issue at a discount
Explanation:
Interest rate risk is defined as the risk changing which, interest rates will affect bond prices. When current interest rates are greater than a bond's coupon rate, the bond will be sold below its face value at a discount. When interest rates are less than the coupon rate, the bond can be sold at a premium--higher than the face value.
Answer:
2nd option is correct.
Explanation:
Variable over head = (Actual Qty. - Standard Qty. ) * Standard cost
Efficiency variance
= (10125-9000) * 30
= $ 33750 (Un-Favorable)
2nd option is correct.
Variance is unfavorable because actual quantity used to produce is more than budgeted quantity allowed at that level of production.
Answer:
NPV= $13160
Explanation:
To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
The formula is:
n
<h3>NPV= -Io + ∑[Rt/(1+i)^t</h3>
t-1
where:
R t =Net cash inflow-outflows during a single period t
i=Discount rate of return that could be earned in alternative investments
t=Number of timer periods
In this exercise:
0= -13000
1= 6000
2= 6000
3=6000
4=6000
5=6000 + 3000 + 2500= 11500
NPV= -13000 + (6000/1.10^1) + (6000/1.10^2) + ... + (115000/1.10^5)
NPV= $13160
Answer:
C.
Explanation:
The law of demand states that when the price of a good or service increases, the quantity demanded decreases and when the price decreases the quantity demanded increases (other things constant).
Is not option A because it says changes in income and not changes in prices. Is not option B because it says the opposite that the law of demand states: when the muffins price is low, Melissa buys fewer than when the price is high. Is not option D because the law of demand is not directly related with substitute goods. It is option C because when the price is low ($0.25) Dave buys more donuts than when the price is high ($0.50)
