Business, 04.12.2020 17:10 s108870

When a firm cannot raise financing for a project under any circumstances, the firm is facing a situation known as: Group of answer choices hard rationing. soft rationing. scenario analysis. contingency planning. sensitivity analysis.

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Answer from: jocelynm0611

Hard Rationing

Explanation:

Hard rationing is a type of Capital rationing which is a term used to explain the cutting back on projects by companies that have limited access to funds.

When Hard Rationing is implemented, it is because the firm is unable to raise financing for a project under any circumstance due to factors that are out of their own hands for instance debt covenants that limit new debt being acquired.

Answer from: Quest

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;

Answer from: Quest

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans.

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.

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