Define a real option

Assignment Help Accounting Basics
Reference no: EM132660348

Problem 1: What is the difference between a loss arising from the unavailability of a website and the lost profits that are incurred when that website is disabled?

Problem 2: Define a real option. Why is there any value attributed to a real option?

  • Avatar was Robbed! Help! The Big Four Accounting Firms, FASB, and large U.S. corporations have a presence in Second Life. The Second Life Community consists of avatars and islands that are owned by organizations and individuals. A virtual market-based economy exists on Second Life. Assume that your avatar has been given $2,000 Linden dollars by one of the Big Four Accounting Firms as an incentive to attend a recruiting seminar. Your avatar flies to the seminar site. As you walk past another avatar in front of the meeting site, you notice your avatar blinks on the screen several times. Your avatar attends the meeting with a number of other student avatars, and you are pleased with the presentation. After the presentation, you want to buy a new suit and tie for your avatar. You notice the $2,000 in Linden dollars is missing. You think your avatar was robbed by the avatar that walked past you on the way to the meeting. Write up a report of the crime for local law enforcement in your community.

Reference no: EM132660348

Questions Cloud

Grid contouring assignment : GRID CONTOURING ASSIGNMENT - DRAW AND LABEL CONTOURS AT 1m INTERVALS OVER THIS GRID - The grade must always be 0.5%. (i.e. falls by 0.5m over 100m)
Describe two contemporary factors : Describe two contemporary factors that seem to be impacting your industry today, and identify their impacts on the interest rates experienced
Discuss the new skills acquired from the class : How would you apply your new knowledge? Discuss the new skills you acquired from this class? How relevant are the new skills in your profession?
Estimate the demand equation for good x : Suppose that your analyst estimates the demand equation for good X as givenbelow: =12- -2 +1 + Good X sells for $1 per unit, good Y sells for $2 per unit, good
Define a real option : What is the difference between a loss arising from the unavailability of a website and the lost profits that are incurred when that website is disabled?
What is the investment worth to you today : If the interest rate is 8.47% and interest in compounded anually, then what is the investment worth to you today?
What is the present value of the installment payments : Assuming that the interest rate on the installment contract is 5%, what is the present value of the installment payments
Why are new employees more susceptible to influence : Why are new employees more ‘susceptible to influence'. How did the managers rationalize taking company inventory for personal use?
Calculate the expected return on ben portfolio : a) Calculate the expected return on Ben's portfolio. Show full working.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd