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How can I use game theory to set up a game designed to help a consumer decide whether to buy life insurance or not. (Assuming the life insurance being considered is term life, i.e. insurance without
An Insurance company has just approached you with a proposal that they consider as a good deal, "You are to pay them $150 a year for 8 years and they will pay you $150 a year thereafter in perpetuit
When the prices change next month will there be an income effect and a substitution effect at work or just one of them? Explain.
Q1. Discuss several possible rationales for charging different prices for different courses of study. Q2. What are the income-distribution effects of a pricing scheme that charges the same fee to all
Suppose JMI plans to sell forty-two S2S-900 airplanes in 2002. Compute JMI's projected operating profit.
In addition, the company expects an initial increase in net operating working capital of $5,000 which will be recovered in year 4. The cost of capital for the project is 12%. What is the project&rsq
Problem: Mills Mining is considering an expansion project. The proposed project has the following features: • The project has an initial cost of $500,000 – this is also the amount which c
Smith and Jones Widget company has total capital, consisting of long-term debt and common equity of $80 million. Thirty-two million of total capital is in the form of long-term debt, which carries a
Hoobastank Co. is comparing two different capital structures. Plan I would result in 1,000 shares of stock and $30,000 in debt. Plan II would result in 2,000 shares of stock and $15,000 in debt. The
The cost-plus pricing approach's major advantage is a. it considers customer demand. b. that sales volume has no effect on per unit costs. c. it is simple to compute. d. none of these.
Students will select a current health care economic issue such as managed care, health care spending, prescription drugs, impact of current legislation on health care, medical care for aging populat
What is the firm's weighted-average cost of capital at various combinations of debt and equity, given the above information?
If X is a normal good, then a fall in price must lead to a rise in consumption, but if X is an inferior good then a fall in price may lead to a rise in consumption. Answer TRUE or FALSE and justify
Problem: Is it realistic to separate costs into fixed and variable components? Can it be done realistically? Can computer analyses do an easier job?
Does the company's financial manager use variable costing or full costing when it evaluates its products?
Now, the economy has entered a recession, and the government has pledged to flight a prolonged war on terrorism. How is the forecast likely to change?
Question 1. Which crop does the farmer plant? I know it has something do with expected value being higher.
Do you see any correlation between the loss of unions and the lack of wage gains over the past two decades. While GDP has grown more than 3% over the past few years, real wage gains have been stagna
What is the difference in the projected ROEs between the restricted and relaxed policies?
Can someone please describe the following project evaluation processes for me: Payback, NPV, PI, IRR. Is any one evaluation process better the others? Why?
Why can the distinction between fixed costs and variable costs be made in the short run? Distinction between fixed costs and variable costs can be made in the short run because a change in degree ca
You drive 5000 miles a year and buy gasoline at the price of $2/gal. Except for differences in annual costs, you are indifferent between driving a 10 year old Buick ($400/yr, 20 miles per gal) or a
If a firm uses external financing as a plug item, has a new capital budget of $3 million, a net income of $4 million, and a plowback ratio of 35%, how much should be raised in external funds?
Thompson corp has proposed project with normal cash flows. In other words, there is an up-front cost followed over time by a series of positive cash flows.
Simpson corporation is considering the purchase of an asset whose risk is greater than the current risk of the firm, based on any method for assessing risk. In evaluating this asset, the decision ma