Which of the following best describes the valuation principle?
a. it is not possible to compare costs and benefits that occur at different points in time, in different currencies, or with different risks.
b. the value of a commodity or an asset to a firm or its investors is determined by its competitive market price. when the value of the benefits exceeds the value of the costs in terms of market prices, the decision will increase the market value of the firm.
c. if equivalent goods or securities trade simultaneously in different markets across the world, they will trade for the same price.
d. the rate at which we can exchange money today for money in the future by borrowing or investing is the current market interest rate and is same across all banks.

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?