On may 31, 20x5, fox co. gave owl co. a $400,000, 11% loan. fox paid owl proceeds of $388,000 after the deduction of a $12,000 nonrefundable loan origination fee. principal and interest are due in 5 annual installments, beginning may 31, 20x6. the repayments yield an effective interest rate of 11% at a present value of $400,000 and 12.4% at a present value of $388,000. what amount of income from this loan should fox report in its 20x5 income statement?

For example, the upper right cell shows that if expresso advertises and beantown doesn't advertise, expresso will make a profit of $15 million, and beantown will make a profit of $2 million. assume this is a simultaneous game and that expresso and beantown are both profit-maximizing firms. if expresso decides to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if expresso decides not to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if beantown advertises, expresso makes a higher profit if it chooses . if beantown doesn't advertise, expresso makes a higher profit if it chooses . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? expresso will choose to advertise and beantown will choose not to advertise. expresso will choose not to advertise and beantown will choose to advertise. both firms will choose to advertise. both firms will choose not to advertise.