In 1985, alice paid $20,000 for an option to purchase ten acres of land. by paying the $20,000, she bought the right to buy the land for $100,000 in 1992. when she acquired the option in 1985, the land was worth $120,000. in 1992, it is worth $110,000. should alice exercise the option and pay $100,000 for the land? a) yes. b) no. c) it depends on what the rate of inflation was between 1985 and 1992. d) it depends on what the rate of interest was.

(a) what was the opportunity cost of non-gm food for many buyers before 2008? (b) why did they prefer the alternative? (c) what was the opportunity cost in 2008? (d) why did it change?

Match the given situations to the type of risks that a business may face while taking credit. 1. beta ltd. had taken a loan from a bank for a period of 15 years, but its sales are gradually showing a decline. 2. alpha ltd. has taken a loan for increasing its production and sales, but it has not conducted any research before making this decision. 3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession. 4. delphi ltd. has taken a short-term loan from the bank, but its supply chain logistics are not in place. a. foreign exchange risk b. operational risk c. term of loan risk d. revenue projections risk

Perez, inc., applies the equity method for its 25 percent investment in senior, inc. during 2018, perez sold goods with a 40 percent gross profit to senior, which sold all of these goods in 2018. how should perez report the effect of the intra-entity sale on its 2018 income statement?