Your company owns a large parcel of land in a neighboring city, which was purchased several years ago for $68,000 for a warehouse, which is no longer needed. another company has offered you $20,000 per year for 20 years for the land. due to some unusual financing arrangements your counter offer is for the $20,000 per year for 20 years plus an additional $10,000 six years from now and an additional $15,000 16 years from now. the other company agrees to the additional payments in years 6 and 16 but only if you agree to delay the start of the 20 equal $20,000 payments until three years from the date of agreement. by now, you and your boss are thoroughly confused. which alternative should be selected? (marr = 15%)

< back to assignment attempts: 1 1 keep the highest: 1 / 2 2. determining opportunity cost juanita is deciding whether to buy a suit that she wants, as well as where to buy it. three stores carry the same suit, but it is more convenient for juanita to get to some stores than others. for example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the suit: store travel time each way price of a suit (minutes) (dollars per suit) local department store 15 102 across town 30 88 neighboring city 60 65 juanita makes $42 an hour at work. she has to take time off work to purchase her suit, so each hour away from work costs her $42 in lost income. assume that returning to work takes juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. as you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. complete the following table by computing the opportunity cost of juanita's time and the total cost of shopping at each location. store opportunity cost of time price of a suit total cost (dollars) (dollars per suit) (dollars) local department store 102 across town 88 neighboring city 65 assume that juanita takes opportunity costs and the price of the suit into consideration when she shops. juanita will minimize the cost of the suit if she buys it from the . grade it now save & continue continue without saving