4 it is 1998 and you own a toy store that sells furby

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4. It is 1998, and you own a toy store that sells Furby toys. You have a regular customer who buys your Furby toys and resells them online. She wants to buy your entire shipment of 100 Furby toys, but she can’t pay you for all of them until the next year. She approaches you and proposes two options: a. If she can have the 100 Furby toys today, she will pay you $40 for each Furby one year from now. b. If she can’t have the 100 Furby toys today, she will buy 80 Furby toys today at their normal price, $35 each. If you choose this option, you will put all the money from the sale into a one-year savings account that has a 6% interest rate. 5. Assuming that there are no risks, which is the better deal for you? Use a calculator to determine the present value of both options. Write down all the numbers and symbols you enter into your calculator, any formulas you use and your final answers. A) PV= $4000/1.06=$3773.58 B) PV $2800*1.06 = $2968.00.06 = 2968 Resubmit 1X + 6% = 2968 1X +.06 = 2968 1.6 = 2968 1.06/1.06 = 2968/1.06 $2800 Option A is the best option. Option B is not clear as to it she is putting the complete money of the sale of 80s of which I calculated or all of the money in which would be the complete 100 toys. Even with the 100 toys in option b it would not sway away from B. PV $3500*1.06 = $3710.00 © Copyright 2015 College for America at Southern New Hampshire University. All rights reserved.
Apply Economic Theories, Furby Mania Supply and Demand Worksheet 6. At the height of the craze, Furby toys are doing so well that you consider investing in Hasbro + ++(the company that makes Furby toys). Explain in your own words the difference between stocks and bonds and how the prices of each are determined. Stocks you are purchasing in the company a part in the company. You can make money when the company makes money or lose money if the company loses money.

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