Maldonia must give up 8 units of TEA to get 16 units of lemons, while Desonia must give up 8 units of tea to get 4 get units of lemons. Hence the opportunity cost of productivity are units of lemon for Maldonia -0.5y(-8/16), and for Desonia it is -2y(-8/4).This means Maldonia has comparative advantage in producing lemon and Desonia has comparative advantage in tea.
Answer:
b) The company will incur a loss
Explanation:
The market rate at the time of issue = 9%, while coupon rate = 8%, it says bonds provide lesser return when compared to the market rate.
At end of year 2 market rate drops to 6% which is lower than the Bond's coupon rate. Which means the bond's providing high return when compared to the market. So, company to retire the bonds need to pay more than the par value.
As company should retire these bonds more than par value, the company incur a loss.
Option 'B is correct
The company incur a loss
Answer:
6.12%
Explanation:
Calculation for How does our decision depend on the interest rate at which we can invest our funds
Present value = 6000-3060
Present value = 2940
Future value = Present value+Present Value*Numver of month* Rate of interest/ 100
3000 = 2940+2940*4/12*R/100
60 = 2940*4/12*R/100
60*12/4 = 2940*R/100
180 = 2940*R/100
180/2940 = R/100
0.061224 = R/100
Rate = 6.1224
Therefore How does our decision depend on the interest rate at which we can invest our funds is 6.1224
Answer:
The performance problem to minor burns will be mainly psychological.
Explanation:
The staff involved will most likely exhibit a reduction in speed at which he or she executed the task which led to the burn.
If the personnel is in a chain of production where their own activity feeds others, it may translate to the increase in the time taken to achieve results.
One solution to this is to critically examine the production process and eliminate the cause of the accident if any.
If the cause of the incident was as a result of carelessness on the part of the staff, then he or she might have to be rescheduled to another department or unit where their current mindset will not stall the overall performance of the team/production line.
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