Au. s. firm holds an asset in great britain and faces the following scenario: state 1 state 2 state 3 probability 25% 50% 25% spot rate ($/pound) 2.2 2.0 1.80 asset value (p* in pound) 2000 2500 3000 asset value (p in $) 4400 5000 5400 where, p* = pound sterling price of the asset held by the u. s. firm p =dollar price of the same asset the variance of the exchange rate a. 0.02 b. 0.10 c. 0.01 d. none of the above

University car wash built a deluxe car wash across the street from campus. the new machines cost $219,000 including installation. the company estimates that the equipment will have a residual value of $19,500. university car wash also estimates it will use the machine for six years or about 12,500 total hours. actual use per year was as follows: year hours used 1 3,100 2 1,100 3 1,200 4 2,800 5 2,600 6 1,200 prepare a depreciation schedule for six years using the following methods: 1. straight-line. 2. double-declining-balance. 3. activity-based.

Acompetitive market in healthcare would a. overprovide healthcare because the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers b. underprovide healthcare because it would eliminate medicare and medicaid c. underprovide healthcare because the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers d. overprovide healthcare because it would be similar to the approach used in canada

In january, knox company requisitions raw materials for production as follows: job 1 $915, job 2 $1,590, job 3 $771, and general factory use $704. during january, time tickets show that the factory labor of $6,300 was used as follows: job 1 $2,344, job 2 $1,711, job 3 $1,554, and general factory use $691. prepare the job cost sheets for each of the three jobs.