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Marta_Voda [28]
3 years ago
10

Lee saves most of his money from his paycheck; he forgoes restaurant meals, new clothes, and a new car, and he lives in a small

one-bedroom apartment. He understands that his utility is low now. However, his ______________ will give him _____ utility in the future.(A) intertemporal decision making; higher(B) intertemporal decision making; lower(C) planning; lower (D) time-preference decision making; higher
Business
1 answer:
jekas [21]3 years ago
8 0

Answer: Option A    

           

Explanation: In simple words, intertemporal decision making refers to the study of how the decision made by an individual today affects the choices that he or she have in the future. It is based on the assumption that less consumption today will bring significant increase in consumption tomorrow.

In the given case, despite of having enough income to lead a healthy lifestyle  in present,Lee decided to save his money in the future. This will lead to choices fro him that will give him higher utility.

Hence from the above we can conclude that the correct option is A.

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You are the financial manager of the Crossrail 1 project in London. The Board overseeing the project, acting on behalf of the UK
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Crossrail 1 project is about to start in London.

This project will require an initial investment of 9.4 billion. The project will start earning cash flows from year  and it will continue to year 60 which is useful life of the project.

The NPV for the project will be 7.36 which is positive. The correct answer is c.

The payback period for project is 13.04 years which is given in the option a so correct answer is a.

The internal rate of return for the project is b. 7.35 .

Based on our analytics and calculation since NPV is positive so cross rail project is beneficial. The board should consider launching this project.

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8 0
3 years ago
Which of the following describes one of the ways that the demographics of an area affect the price of housing in that area? A. W
Anna35 [415]

Answer:

An area with younger people will have a higher demand for rentals and a lower demand for buying.- D.

4 0
3 years ago
Read 2 more answers
Market is a schedule or curve showing the various amounts of a product that producers are willing and able to make available for
Elza [17]

A market supply is a schedule or curve showing the various amounts of a product that producers are willing and able to make available for sale at each possible price during a specific period.

A market demand plan is a table that shows the relationship between price and demand for a particular commodity. To better understand this relationship, many economists plot a timeline of market demand on a graph called a market demand curve.

The demand plan shows that when the price increases, the quantity demanded decreases and vice versa. These points are plotted and the line connecting them is the demand curve. The product downward slope of the demand curve again indicates the law of demand, the inverse relationship between price and quantity demanded.

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3 0
2 years ago
"refer to your way, inc. what type of products is sold at your way?"
hjlf
Your way, inc is a furniture store located in Dallas, Texas, United States, it makes unique and fine pieces of furnitures, they also repair and recover them. 
4 0
3 years ago
Galen Company income under variable costing is $1,050,000. Fixed production costs in ending inventory are $300,000 and $250,000
lana [24]

Answer:

Income under absorption costing = $1,100,000

Explanation:

Marginal and absorption costing are two different methods to deal with fixed production overheads and and decide whether or not they are included in valuation of inventory.

<u>Valuation of inventory</u>

Opening and closing inventory are valued at variable cost under variable costing.  Whereas in absorption costing, opening and closing inventory are valued at full production cost (including fixed production overheads).

<u>Reconciling profits reported under two different methods</u>

When inventory levels increase or decrease during a period then profits will differ under absorption and marginal costing because of fixed production cost.

Net Income under absorption costing = Income under variable costing + fixed production cost in ending inventory – fixed production cost in beginning inventory

= $1,050,000 + $300,000 - $250,000

= $1,100,000

7 0
3 years ago
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