Answer:
the correct answer would be D No, trade isn't possible, because Stephen has an absolute advantage in both making cookies and moving boxes.
Explanation:
Stephen can move 34 more boxes/hr and bake 19 more cookies/hr than Lebron can.
Answer: A. Present; B. Taken; C. Future; D. Present
Explanation:
The present value of a future amount of money is the amount that, if invested today, will grow to be as large as that present amount when the interest that it will earn is taken into account.
The calculation that we use to convert a future amount of money to its present value is called discounting.
Answer:
Price Risk, Reinvestment Risk, Investment Horizon and Longer maturity Bond.
Explanation:
- Price risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.
- Reinvestment risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues.
- Which type of risk is more relevant to an investor depends on the investor's investment horizon, which is the period of time an investor plans to hold a particular investment.
- Longer maturity bonds have high price risk but low reinvestment risk, while higher coupon bonds have a higher level of reinvestment risk and a lower level of price risk.
Answer:
$535,000
Explanation:
The computation of the Latham's basis in the building is shown below:
= The material cost + direct labor cost + worker pension cost + architectural fees + depreciation on equipment + interest paid during the year
= $300,000 + $150,000 + $5,000 + $15,000 + $25,000 + $40,000
= $535,000
It includes both direct and indirect cost
Since we have to compute for the building so we do not considered the purchase value of land and the loan amount
