Answer:
d. All of these choices are correct
Explanation:
Answer:
C. Cyclically unemployed
Explanation:
Cyclically unemployed is when workers lose their jobs because of downturns in the business cycle
Answer:
The second option which 5 years to maturity exhibited a lower price of
$523.95
Explanation:
In order to ascertain the option with lower, it is important we determine the price of each investment based on the fact the price of an investment opportunity today is the present value of its future cash flow is the maturity value of $1000 in both cases:
a.
PV=FV/(1+r)^n
PV=price of investment
FV=future value=$1000
r= 13.80%.
n=4 years
PV=$1000/(1+13.80%)^4
PV=$596.25
b.
PV=FV/(1+r)^n
PV=price of investment
FV=future value=$1000
r= 13.80%.
n=5 years
PV=$1000/(1+13.80%)^5
PV= $523.95
Answer:
c. All are correct.
Explanation:
Variable costs depend on the number of units produced, if production drops to zero, all associated variable costs also drop to zero; options b and d are correct.
Fixed cost remain the same with changes in the production volume. Therefore, even if Bev's Bags produced no bags, fixed cost of thread would stay the same; option a is correct.
Therefore, all are correct.
