You have just purchased a new DVD player to show videos to your customers. The DVD player costs $500, and you depreciate the machine at a rate of 25% each year. You can borrow money from the bank at 10%, or receive 6% for depositing money at the bank. The expected inflation rate in the coming year is 5%. You used the company's own funds to purchase the DVD player. The firm's user cost of capital for the first year is: a. $130
b. $150.
c. $155.
d. $175.

What is the percentage change in price for a zero coupon bond if the yield changes from 6.56.5% to 5.55.5%? the bond has a face value of $1 comma 0001,000 and it matures in 1010 years. use the price determined from the first yield, 6.56.5%, as the base in the percentage calculation?

You are an employee of an u.s. firm that produces personal computers in thailand and then exports them to the united states and other countries for sale. the personal computers were originally produced in thailand to take advantage of relatively low labor costs and a skilled workforce. other possible locations considered at that time were malaysia and hong kong. the u.s. government decides to impose punitive 100% ad valorem tariffs on imports of computers from thailand to punish the country for administrative trade barriers that restrict u.s. exports to thailand. how do you think your firm should respond? what does this tell you about the use of targeted trade barriers?

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