Let’s assume that the old clunker you have been driving needs $500 in repairs in order to pass an annual car inspection. you are considering buying a new car, and you contact car dealers and banks to determine the best deal you can get on a car loan. assume two different scenarios: (a) the lowest interest rate you find on a five-year car loan is 10 percent, and the annual rate of inflation for the next five years will be
9 percent. (b) the lowest interest rate you can find on a five-year car loan is 6 percent, and the annual rate of inflation for the next five years will be 1 percent.

question: underwhich scenario—(a) or (b)—will you pay less, in real income, for your car loan?

University hero is considering expanding operations beyond its healthy sandwiches. jim axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. each smoothie would include two free health supplements such as vitamins, antioxidants, and protein. jim believes smoothie sales should fill the slow mid-afternoon period. adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. jim provides the following projections of net sales, net income, and average total assets in support of his proposal. sandwichesonly sandwiches and smoothies net sales $ 750,000 $ 1,350,000 net income 120,000 210,000 average total assets 350,000 750,000 return on assetschoose numerator ÷ choose denominator = return on assets÷ = return on assets÷ = profit margin÷ = profit margin÷ = asset turnover÷ = asset turnover÷ = times