Spring Airlines is a small budget airline that is based in China. The company has a strict rule against passengers bringing any food or beverage on board with them. In a country where meal time is extremely important, this has caused some passengers to slap, throttle, and insult stewardesses who tried to enforce this rule. The tenacity with which the company's employees enforce this ruling is based on how the employees predict customers will react to the news. This is an application of the theory.

a. psychological
b. estimation
c. equity
d. expectancy
e. reevaluation

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan