Options have positive value if the expected cash flow from making the investment is more than the value of maintaining the option.
Indicate whether the statement is true or false
Question 2
Fernando plans to sell hot coffee, cider and tea from a sidewalk cart near Wall Street in New York City. Each month he expects to sell 20,000 of product to 4,000 customers.
He spent 4,000 on buying his beverage and supplies in bulk for the first month. The rental deposit on the cart was 4,000 and Fernando spent 500 to customize it. He bought a laptop, printer and software for 1,000 and paid a total of 1,000 for licenses. He has 500 in petty case for start up. His monthly costs are: Utilities = 500, Salary = 4,000, Advertising = 0, Insurance = 500, Interest = 0, Rent (cart) = 2,000, Depreciation = 0. Calculate Fernando's start-up costs without a reserve.
A) 18,000
B) 14,000
C) 12,500
D) 11,000
Respiratory Assistive Devices, Peak Flow Meter
Heart Flow
Positive Babinski’s sign.
Blood Flow
Model for evidence-based clinical decision making.
Investment in Computers as a Percentage of GDP, 1982–2009