James is taking courses during the first half of Summer Semester at Ohio University, and he needs a car to use while he is in Athens for the summer. Laura is taking classes abroad during the summer, and she agrees to lease her car to James. Laura tells James they can figure out how much the lease will cost at the end of the summer when she returns. Under the UCC, this lease would not valid without a negotiated price and length of the lease. True False Why??
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Operations Management
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James is taking courses during the first half of Summer Semester at Ohio University, and he needs a car to use while he is in Athens for the summer. Laura is taking classes abroad during the summer, and she agrees to lease her car to James. Laura tells James they can figure out how much the lease will cost at the end of the summer when she returns.
Under the UCC, this lease would not valid without a negotiated price and length of the lease.
True
False
Why??
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- Rookie Cookies wants to rent a new bakery space to operate their business at $10,000 a year for the next 5 years. The rent agreement specifies that a $4,000 security deposit needs to be paid by Rookie up-front. In year 4 of the rental agreement, a one-time machinery maintenance fee of $6,000 will need to be paid by Rookie. When the rental agreement expires, Rookie feels they cam sell the machinery they maintained during the rental agreement for $7,000. Assuming a 10% ra of return, what is the present value (or cost) of the bakery space rental decision? Present Value of a $1 Present Value of an Annuity of $1 Period 10% Period 10% 0.909 1 0.909 2 0.826 0.751 0.683 0.621 3 345 O-$50,355 O-$41,297 O-$41,661 O-$18,655 2 3 45 1.736 2.487 3.170 3.791You are starting a business and have signed a rental lease for an office in Santa Monica. This office lease is for four years with an annual rent of $24,000 per year, paid at the beginning of each year of the lease. However, just before you pay your first rent, the property owner decides he wants to use the space for another purpose and proposes to buy back the lease from you. The rent for any other similar space you can find for your business is $30,000 per year, also paid at the beginning of the year. What would be the minimum compensation that you would ask from the property owner to give up your original lease? Calculate the numerical answer. Assume the discount interest rate is 6%.Amy Lloyd is interested in leasing a new Honda and has contacted three automobile dealers for pricing information. Each dealer offered Amy a closed-end 36-month lease with no down payment due at the time of signing. Each lease includes a monthly charge and a mileage allowance. Additional miles receive a surcharge on a per-mile basis. The monthly lease cost, the mileage allowance, and the cost for additional miles follow: Amy decided to choose the lease option that will minimize her total 36-month cost. The difficulty is that Amy is not sure how many miles she will drive over the next three years. For purposes of this decision, she believes it is reasonable to assume that she will drive 12,000 miles per year, 15,000 miles per year, or 18,000 miles per year. With this assumption Amy estimated her total costs for the three lease options. For example, she figures that the Hepburn Honda lease will cost her 36(299) + 0.15(36,000 36,000) = 10,764 if she drives 12,000 miles per year, 36(299) + 0.15(45,000 36,000) = 12,114 if she drives 15,000 miles per year, or 36(299) + 0.15(54.000 36,000) = 13,464 if she drives 18,000 miles per year. a. What is the decision, and what is the chance event? b. Construct a payoff table for Amys problem. c. If Amy has no idea which of the three mileage assumptions is most appropriate, what is the recommended decision (leasing option) using the optimistic, conservative, and minimax regret approaches? d. Suppose that the probabilities that Amy drives 12,000, 15,000, and 18,000 miles per year are 0.5, 0.4, and 0.1, respectively. What option should Amy choose using the expected value approach? e. Develop a risk profile for the decision selected in part (d). What is the most likely cost, and what is its probability? f. Suppose that, after further consideration, Amy concludes that the probabilities that she will drive 12,000, 15,000, and 18,000 miles per year are 0.3, 0.4, and 0.3, respectively. What decision should Amy make using the expected value approach?
- The owner of an apartment building is deciding what rent to charge and how to cover any damages. A lease with a monthly rent of $1,000 would cover expenses, including normal wear and tear but no additional damage. Which of the following lease options would create an adverse selection of buyers due to private information? Group of answer choices Rent of $1,000 plus a one-time, nonrefundable cleaning fee of $300. Rent of $1,100 plus a security and cleaning deposit of $500 that will be refunded less any damage repairs or cleaning. Rent of $1,000 plus a security and cleaning deposit of $1,500 that will be refunded less any damage repairs or cleaning. Rent of $1,300.hmed is considering his plans for the coming weekend. He is currently working as a marketing specialist in a big advertising company. He normally spends the weekend with family but this weekend he is thinking of going on a camping trip that would cost him about $1,900. At the same time, his manager asked him whether he can help during the weekend and the company will be willing to pay him an overtime bonus of $1,000. If Ahmed goes on the camping trip, he can manage to provide a number of quick consultancy services that would earn him around $2,500. If Ahmed decided to go on the camping trip what would be the incremental cost of that decision ($)? a. 2,500 b. 600 c. None of the given answers d. 1,000 E. 1,900Would Qualifying an Indorsement Be Ethical? Suppose you have taken a promissory note for $3,500 payable in 12 months with interest at 10 percent as payment for some carpentry work you did for a friend. You have some reason to believe the maker of the note is in financial difficulty and may not be able to pay the note when it is due. You discuss with an elderly neighbor the possibility of her buying the note from you as an investment, and she agrees to buy it from you for $3,000. Would it be ethical for you to indorse the note with a qualified indorsement ("without recourse")?
- They are considering trading their car in for a newer used vehicle so that Harry can have dependable transportation for commuting to work. The couple still owes $4,770 to the credit union for their current car, or $265 per month for the remaining 18 months of the 48-month loan. The trade-in value of this car plus $1,000 that Harry earned from a freelance interior design job should allow the couple to pay off the auto loan and leave $1,400 for a down payment on the newer car. The Johnsons have agreed on a sales price for the newer car of $23,000. The money planned for tires will be spent for other incidental taxes and fees associated with the purchase. 1. Using the Garman/Forgue companion website or the information in Table 7-2, calculate the monthly payment for a loan period of three, four, five, and six years at 8 percent APR. Round your answers to the nearest cent. Round Monthly Installment Payment for a Loan in intermediate calculations to the nearest cent.Ahmed is considering his plans for the coming weekend. He is currently working as a marketing specialist in a big advertising company. He normally spends the weekend with family but this weekend he is thinking of going on a camping trip that would cost him about $1,900. At the same time, his manager asked him whether he can help during the weekend and the company will be willing to pay him an overtime bonus of $1,000. If Ahmed goes on the camping trip, he can manage to provide a number of quick consultancy services that would earn him around $2,500. If Ahmed decided إنهاء المحاولة to go on the camping trip what would be the incremental cost of that ?($) decision 1,900 .a 2,500 .b 1,000 .C None of the given answers 600 .eAhmed is considering his plans for the coming weekend. He is currently working as a marketing specialist in a big advertising company. He normally spends the weekend with family but this weekend he is thinking of going on a camping trip that would cost him about $1,900. At the same time, his manager asked him whether he can help during the weekend and the company will be willing to pay him an overtime bonus of $1,000. If Ahmed goes on the camping trip, he can manage to provide a number of quick consultancy services that would earn him around $2,500. If Ahmed decided to go on the camping trip what would be the incremental income of that decision ($)? O a. 600 O b. 1,000 O c. 2,500 O d. None the given answers e. 1,900
- Ahmed is considering his plans for the coming weekend. He is currently working as a marketing specialist in a big advertising company. He normally spends the weekend with family but this weekend he is thinking of going on a camping trip that would cost him about $1,900. At the same time, his manager asked him whether he can help during the weekend and the company will be willing to pay him an overtime bonus of $1,000. If Ahmed goes on the camping trip, he can manage to provide a number of quick consultancy services that would earn him around $2,500. If Ahmed decided to go on the camping trip what would be the incremental cost of that decision ($)? а. 2,500 O b. 1,900 O c. 600 d. None of the given answers O e. 1,000Ahmed is considering his plans for the coming weekend. He is currently working as a marketing specialist in a big advertising company. He normally spends the weekend with family but this weekend he is thinking of going on a camping trip that would cost him about $1,000. At the same time, his manager asked him whether he can help during the weekend and the company will be willing to pay him an overtime bonus of $2,500. If Ahmed goes on the camping trip, he can manage to provide a number of quick consultancy services that would earn him around $1,900. If Ahmed decided to work during the weekend what would be the incremental revenue of that decision ($)? O a. 1,900 O b. 1,000 O c. None of the given answers O d. 2,500 O e. 900Ahmed is considering his plans for the coming weekend. He is currently working as a marketing specialist in a big advertising company. He normally spends the weekend with family but this weekend he is thinking of going on a camping trip that would cost him about $1,000. At the same time, his manager asked him whether he can help during the weekend and the company will be willing to pay him an overtime bonus of $2,500. If Ahmed goes on the camping trip, he can manage to provide a number of quick consultancy services that would earn him around $1,900. If Ahmed decided to go on the camping trip what would be the incremental cost of that ?($) decision 900 .a O 1,900 .b O 2,500 .CO None of the given answers 1,000 e O