Brett has almond orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner of the walnut orchard next door has offered to swap thisyear's crop with him. Assume he produces 1,048 tons of almonds and his neighbor produces 762 tons of walnuts. If the market price of almonds is $101 perton and the market price of walnuts is $118 per ton:a. Should he make the exchange?b. Does it matter whether he prefers almonds or walnuts? Why or why not?C

Two owners have two different commodities. We have to find if the swap of the commodities makes…

Answered: Brett has almond orchards, but he is…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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(Related to Checkpoint 5.5) (Solving for n) Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $340,000 Rolls-Royce Phantom. Jack currently has $62,720 that he may invest. He has found a mutual fund with an expected annual return of 4.5 percent in which he will place the money. How long will it take Jack to win Jill's and in marriage? Ignore taxes and inflation. Question content area bottom Part 1 The number of years it will take for Jack to win Jill's hand in marriage (Round to one decimal place.)
Nahshid and Senim own competing businesses and have agreed to collude to keep prices high. They both plan on being in business indefinitely (so this is an infinitely repeated game.) IF they collude, Nahshid gets a payoff of $120 now and $120 in every year going forward. But if Nahshid "cheats" he gets a one-time payoff of $130 now. Senim responds with a trigger strategy which means that Nahshid only gets $118 for every year after this. What does the interest rate have to be in order for Nahshid to continue colluding and not cheat? Select one: O a. Interest rate must be greater than or equal to 0.1, or 10%, to sustain collusion. O b. Interest rate must be less than or equal to 0.1, or 10%, to sustain collusion. O c. Interest rate must be greater than or equal to 0.2, or 20%, to sustain collusion. O d. Interest rate must be less than or equal to 0.2, or 20%, to sustain collusion.
Roxy operates a dress shop in Arlington, Virginia. Lisa, a Maryland resident, comes in for a measurement and purchases a $2,800 dress. Lisa returns to Virginia a few weeks later to pick up the dress and drive it back to her Maryland residence, where she will use the dress. Assuming that Virginia's sales tax rate is 5 percent and that Maryland's sales tax rate is 6 percent, what is Roxy's sales tax collection obligation? Multiple Choice $0 $140 to Virginia $140 sales tax to Virginia and $28 use tax to Maryland $168 to Maryland
Phoebe, who files single, holds several crypto wallets with large account balances. Her adjusted gross income (AGI) is expected to be around $475,000. If she decides to sell off some holdings, which of the following techniques can she use to lessen her tax impact? Since the market always rises, she can sell first-in, first-out and will always be selling the lowest basis coins first. If she reinvests her proceeds in a Qualified Opportunity Fund within 180 days, she may defer paying any tax on her gains. This will enable her to spread the tax impact over several years. By selling her short-term holdings, she will avoid capital gains, and she can pay ordinary income rates on the gains. Each wallet is treated as a separate business entity. She can sell a little from each and it won't impact her taxes at all.
Hagen Banse is a landscape contractor. He charges less for labor than other contractors, but he charges his clients the retail price for a plant while he pays only a wholesale price. Hagen charges a client $450 for an olive tree that only costs him $250. What is the markup percent based on cost?
(Related to Checkpoint 5.5) (Solving for n) Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $330,000 Rolls-Royce Phantom. Jack currently has $19,770 that he may invest. He has found a mutual fund with an expected annual return of 6.5 percent in which he will place the money. How long will it take Jack to win Jill's hand in marriage? Ignore taxes and inflation. The number of years it will take for Jack to win Jill's hand in marriage is C years. (Round to one decimal place.)
Use the following information. When "trading up," it is preferable to sell your old house before buying your new house because that allows you to use the proceeds from selling your old house to buy your new house. When circumstances do not allow this, the homeowner can take out a bridge loan.Tina and Mike have sold their house, but they will not get the proceeds from the sale for an estimated 3 months. The owner of the house they want to buy will not hold the house that long. Tina and Mike have two choices: let their dream house go or take out a bridge loan. The bridge loan would be for $88,000, at 8.5% simple interest, due in 90 days. (Round your answers to the nearest cent.) (a) How big of a check would they have to write in 90 days?$ (b) How much interest would they pay for this loan?
Explain how to get these answers
Austin is going on holiday with his infant daughter and has a first class air ticket. He values being in first class instead of coach at $300. A CEO has the seat adjacent to him and is considering offering to pay Austin to move to one of the empty seats in coach. a. The CEO values quiet at $600. Can Austin and the CEO reach a mutually agreeable price for Austin to move to coach? b. If instead the CEO values quiet at $200, can Austin and the CEO reach a mutually agreeable price for Austin to move to coach?
I own a bike that value at $1,000. I list it for sale on Craigslist. Barney sees the bike and determine that it would be worth up to $1,500 to him. He offers me $1,200 and I accept. Before Barney can pick up the bike, Charles stops by my house to look at the bike. He determines the bike would be worth $1,700 to him and he offers me $1,500. I sell the bike to Charles. Barney successfully sues me for breach of contract. If the court orders me to pay expectation damages, what is my net gain, if any, from the sale of the bike? [Be sure to deduct the value of the bike.]
Javier has a worm business in which he buys night crawlers from younger kids for 4 cents each and sells them for $1.25 per dozen. What is the percent markup on cost, to the nearest tenth of a percent?
Anne Murray is planning to buy a rental property, in addition to the family home she and Henry own. She is considering a property in Bristol costing £210,000. She has savings of £85,000 which she will use as a deposit but will need to borrow the remaining amount for the purchase. She has had a fixed-rate mortgage agreed in principle by Royal East Bank, for which she will be charged 4.75% interest. She wants to know what income she might expect to get on her investment. Local agents have estimated that the monthly rent may be £1,450 per month, with agent’s fees for managing the property being charged at 5% of the rent. Provide Anne with an estimate of the relevant costs of renting the property and the net rental income that she might expect to get. Anne has estimates for some of the other costs she will incur as follows: Repairs and maintenance per year £700 Property insurance per year £395 Mortgage arrangement fee £1950…

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