Author Question: Options have positive value if the expected cash flow from making the investment is more than the ... (Read 52 times)

deesands · **on:** Jul 6, 2018

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

sierrahalpin · **Reply #1 on:** Jul 6, 2018

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 59% of students answer this correctly