1. Why would someone with only $275,000 available, purchase one share of Berkshire-Hathaway stock which is currently priced at around $274,750 per share when they could easily purchase far more shares of IBM which is selling for around $152.03 per share? Explain.
2. Compare and contrast the novel and payback methods of capital investment evaluation.
3. "Balance-of- payments deficits always cause a country to lose international reserves" . Question: Is this statement true,false or uncertain? explain your answer.