Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $732,500. this fourth parcel __1__ be sold because __2__ will purchase it from the seller for at least the minimum price.

1) a. will
b. will not
2) a. no one
b. ravi ($690,000)
c. maria ($720,000)
d. simone ($680,000)

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