Explain why it is inappropriate to use one yield to discount all the cash flows of a financial asset
What will be an ideal response?
Because cash flows from a financial asset can occur at different points in time, it is not correct to assume they will all have the same yield and thus should be discounted at the same interest rate. Each cash flow should be discounted at a unique interest rate appropriate for the period in which the cash flow will be received. Thus, the correct way to think about an asset is as a package of cash flows with each cash flow discounted by a rate appropriate for the period received.
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Microsoft, SAP, Oracle, and all other for-profit organizations that develop software own their software and license it.
Answer the following statement true (T) or false (F)
As your consumption increases during a period of time, the satisfaction you enjoy from it usually increases at an even greater rate
Indicate whether the statement is true or false.
The UCC deals with unconscionability in a contract by providing that a court may:
a. refuse to enforce the contract. b. enforce the remainder of the contract without the unconscionable clause. c. limit the application of any unconscionable clause as to avoid any unconscionable result. d. All of the above.
Give at least two reasons why safety rules may not be obeyed.
What will be an ideal response?