After hearing a knock at your front door, you are surprised to see the prize patrol from a large, well-known magazine subscription company. it has arrived with the good news that you are the big winner, having won $28 million. you have three options. (a) receive $1.4 million per year for the next 20 years. (b) have $10 million today. (c) have $4 million today and receive $1,100,000 for each of the next 20 years. your financial adviser tells you that it is reasonable to expect to earn 14 percent on investments..calculate the present value of each option. (future value of $1, present value of $1, future value annuity of $1, present value annuity of $1.) (use appropriate factor(s) from the tables provided. enter your answers in dollars but not in millions.)
determine which option you prefer. option boption aoption c

Which statement or statements are implied by equilibrium conditions of the loanable funds market? a firm borrowing in the loanable funds market invests those funds with a higher expected return than any firm that is not borrowing. investment projects which use borrowed funds are guaranteed to be profitable even after paying interest expenses. the quantity of savings is maximized, thus the quantity of investment is maximized. a loan is made at the minimum interest rate of all current borrowing.

Mountain mouse makes freeze-dried meals for hikers. one of mountain mouse's biggest customers is a sporting goods superstore. every 66 days, mountain mouse checks the inventory level at the superstore and places an order to restock the meals. these meals are delivered by ups in 55 days. average demand during the reorder period and order lead time is 8585 meals, and the standard deviation of demand during this same time period is about 1919 meals.calculate the restocking level for mountain mouse. assume that the superstore wants a 95\% service level. what happens to the restocking level if the superstore wants a higher level of service-say, 99]%? the restocking level for the 95% service level is 117 mealssuppose there are 25 meals in the superstore when mountain mouse checks inventory levels. how many meals should be ordered, assuming a 95% service level?

Ray gives his son, mason, three bowls. these bowls have the same capacity, but each one differs slightly in its shape and size. ray tells his son that one of the bowls can hold more liters of oil than the other two bowls. mason points out that all the bowls, though may appear different in size and shape, can store the same volume of oil. in this case, ray was most likely testing mason's concept of