You Are Considering a Temporary Opening of a Kiosk in the Local

question 372

Multiple Choice

You are considering a temporary opening of a kiosk in the local mall. Any sale you make will be a one-time sale. There is only a 45 percent chance that you will collect your money on a credit sale.
The product you want to sell has a variable cost of $4.10 and a sales price of $5.75. The monthly
Interest rate is 1.3 percent. Should you offer people 30 days to pay? Why or why not?

• A) Yes; because you will earn $2.23 on every credit sale you make.
• B) Yes; because you will earn $5.68 on every credit sale you make.
• C) No; because the net present value of the potential sale is -$1.55.
• D) No; because the net present value of the potential sale is -$.98.
• E) It doesn't matter; because the present value of the potential sale is $0.

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Definitions:

G Protein

A class of proteins that act as molecular switches inside cells, involved in transmitting signals from various stimuli outside a cell to its interior.

Receptor Molecules

Proteins located on the cell surface or within cells that bind specific substances, triggering a biological response.

Up-regulation

refers to the process of increasing the response to a stimulus, often involving an increase in the number of receptors on a cell's surface.

Receptor Sites

Specific locations on cell surfaces or within cells where molecules, such as hormones or neurotransmitters, bind to elicit a response.