Companies most likely use the foreign-exchange market to ________

The only difference between Joe's and Moe's is that Joe's has old, fully depreciated equipment. Moe's just purchased all new equipment which will be depreciated over eight years. Assuming all else equal:

A. Joe's will have a lower profit margin. B. Joe's will have a lower return on equity. C. Moe's will have a higher net income. D. Moe's will have a lower profit margin. E. Moe's will have a higher return on assets.

Suppose someone offered you your choice of two equally risky annuities, each paying $5,000 per year for 5 years. One is an annuity due, while the other is a regular (or deferred) annuity

If you are a rational wealth maximizing investor, which annuity would you choose? A) The annuity due B) The deferred annuity C) Either one, because as the problem is set up, they have the same present value. D) Without information about the appropriate interest rate, we cannot find the value of the two annuities, hence we cannot tell which is better. E) The annuity due; however, if the payments on both were doubled to $10,000, the deferred annuity would be preferred.