Explain how an interest rate is just a price. Give at least 3 examples of how an interest rate represents a price for the Opportunity Cost. At least one of your examples must relate to a business decision, and why you as a FinanCial Manager would or would not recommend a transaction.

Give at least 3 examples of how an interest rate represents a price for the Opportunity Cost. At least one of your examples must relate to a business decision, and why you as a Financial Manager would

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Ursus, inc., is considering a project that would have a five-year life and would require a $1,650,000 investment in equipment. at the end of five years, the project would terminate and the equipment would have no salvage value. the project would provide net operating income each year as follows (ignore income taxes.):

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be: