Now that you’ve thought about the decision rule that should be applied to your decision, apply it to the following security offered by your broker: jing associates, llc, a large law firm in denver, is building a new office complex. to pay for the construction, jing associates is selling a security that will pay the investor the lump sum of $38,600 in nine years. the current market price of the security is $16,429. assuming that you can earn an annual return of 8.25% on your next most attractive investment, how much is the security worth to you today? $18,912 $19,858 $31,205 from strictly a financial perspective, should you invest in the jing security? no yes why or why not? because the cost of the security is greater than the discounted value of the security’s future cash flows. because the discounted value of the security’s future cash flows is greater than the cost of the security.

Roi analysis using dupont model. charlie? s furniture store has been in business for several years. the firm? s owners have described the store as a ? high-price, highservice? operation that provides lots of assistance to its customers. margin has averaged a relatively high 32% per year for several years, but turnover has been a relatively low 0.4 based on average total assets of $800,000. a discount furniture store is about to open in the area served by charlie? s, and management is considering lowering prices in order to compete effectively. required: a. calculate current sales and roi for charlie? s furniture store. b. assuming that the new strategy would reduce margin to 20%, and assuming that average total assets would stay the same, calculate the sales that would be required to have the same roi as they currently earned. c. suppose that you presented the results of your analysis in parts a and b of this problem to charlie, and he replied, ? what

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr

In early january, burger mania acquired 100% of the common stock of the crispy taco restaurant chain. the purchase price allocation included the following items: $4 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. burger mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. what is the total amount of amortization expense that would appear in burger mania's income statement for the first year ended december 31 related to these items?