Answer:
A and B
Explanation:
Unless you can choose B by itself then go with A and B.
Sensitivity analysis. Where one variable is being tweaked a little to see the NPV, that is always sensitivity analysis.
Answer:
$20000 gain for John Corporation and $10000 loss for Bass Corporation.
Explanation:
John Corporation gain(loss) = FMV of property - Liability assumed - Stock basis
= 55000-10000-25000
= 20000
Bass Corporation gain/loss = 55000-65000
= - 10000
Therefore, $20000 gain for John Corporation and $10000 loss for Bass Corporation.
Answer:
The best recommendation to be made to this client is to do nothing.
Explanation:
Investment in stock is a highly risky investment because price of stock often fluctuates which can make an investor to lose a lot of money.
From the question, the client is already old at age 67 with a low income and he does not have any other liquid assets apart from the annual income of $25,000, mainly from social security and interest on funds held in a bank savings account.
Since losing so much money through investment in stock is not affordable to him, the best recommendation to be made to this client is to that he should do nothing.
The answer is selling Treasury bills, which decreases bank
reserves. The government securities that are used in open
market processes are Treasury bills, notes or bonds. If the FOMC needs
to grow the money supply in the economy it will acquire securities. On the
other hand, if the FOMC wants to decrease the money supply, it
will vend its securities.
