04 Jun Question Discussion 1: “Changes in Input Prices.”
Question
Discussion 1: “Changes in Input Prices.” Please respond to the following:
Imagine you are a consultant hired to give advice to a fast food restaurant which is faced with employees asking for a 25% increase in pay. In order to give good advice, you need more information. Create three to four (3-4) questions that you would ask this restaurant owner in order to give good advice and give your rationale for asking them.
Discussion 2: “Rental and Interest Rates.” Please respond to the following:
You want to purchase a $4,000 TV with the latest bells and whistles. Investigate which is the best deal to obtain the TV. Calculate the cost of capital for any three (3) of the six (6) methods below.
Rent-A-Centers (or a similar national rental chain)
Best Buy credit card
Pay Day Cash Advance (or any similar national cash advance chain)
Personal loan from your bank or credit union
Pay cash after saving for 24 months
A home equity loan through your bank
Of your three (3) choices, discuss the implications of the opportunity costs, the real return, and how inflation factors into your final choice.
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