Can you explain what operating costs of B on the Y equal to C in Lamens terms? I don't understand the logic here. The operating cost for B on the Y route is equal to C on the Y route, and salvage is $1million for C, hence Price of B = Price of C +$13.27 -$7.58 = Price of C + $5.69 = $1+$5.69 = $6.69 millions Also, the operating cost for A on X route is equal to B on X route, hence Price of A = Price of B +$9.48 -$5.6 = Price of B + $3.79 = $6.69 + $3.79 = $10.48 millions
Can you explain what operating costs of B on the Y equal to C in Lamens terms? I don't understand the logic here. The operating cost for B on the Y route is equal to C on the Y route, and salvage is $1million for C, hence Price of B = Price of C +$13.27 -$7.58 = Price of C + $5.69 = $1+$5.69 = $6.69 millions Also, the operating cost for A on X route is equal to B on X route, hence Price of A = Price of B +$9.48 -$5.6 = Price of B + $3.79 = $6.69 + $3.79 = $10.48 millions
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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Can you explain what operating costs of B on the Y equal to C in Lamens terms? I don't understand the logic here.
The operating cost for B on the Y route is equal to C on the Y route, and salvage is $1million for C, hence
Price of B = Price of C +$13.27 -$7.58 = Price of C + $5.69 = $1+$5.69 = $6.69 millions
Also, the operating cost for A on X route is equal to B on X route, hence
Price of A = Price of B +$9.48 -$5.6 = Price of B + $3.79 = $6.69 + $3.79 = $10.48 millions
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