Salt and Pepper plan on retiring 27 years from today and plan to have the same amount saved at that time. In preparation for this, Salt is depositing $15,000 today at an annual interest rate of 5.2 percent. How will Pepper’s deposit amount vary from Salt’s if Pepper also makes a deposit today but earns an annual interest rate of 6.2 percent? Multiple Choice $3,417.09 more $3,381.39 less $4,333.33 less $4,274.12 less $4,118.42 more

What do economists mean when they use the latin expression ceteris paribus?

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

What are the general categories of capital budget scenarios? describe the overall decision-making context for each.