Type the correct answer In the box. Spell all words correctly.

Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (

mel-nik [20]

Answer:

Explicit costs - $51,000

Explicit costs are those for which a person incurs in actual spending of money. In this case, Christine had to pay $15,000 in wages, and $36,000 in rent ($3,000 x 12). These are expenses that she had to pay money for, and that had to be accounted for in the accounting books, and in the financial statements. These are in other words, explicit costs.

Implicit costs - $40,000

Implicit costs are simply the opportunity costs. An opportunity cost is the cost of the next more valuable alternative when faced with two or more options. No money is paid for this costs. The implicit costs for Christine were the $40,000 that she not receive as wages if she had continued working at a real state firm.

8 0

3 years ago

3. An investor shorts 100 shares when the share price is $20 and closes out the position six months later when the share price i

solniwko [45]

Answer:

$160

Explanation:

Calculation to determine How much does the investor gain or lose

Investor gain =[($20-$18.2)*100 Shares]- ($0.2*100 shares)

Investor gain=($1.8*100 shares)-($0.2*100 shares)

Investor gain=$180-$20

Investor gain=$160

Therefore The amount that the investor gain is $160

7 0

3 years ago

Batista Company management wants to maintain a minimum monthly cash balance of $19,900. At the beginning of April, the cash bala

9966 [12]

Answer:

the amount must be borrowed is $8,900

Explanation:

The computation of the amount must be borrowed is shown below:

Opening cash balance $19,900

Add: cash receipts $244,400

Less: cash disbursements -$253,300

Cash balance after disbursements $11,000

Minimum monthly cash balance $19,900

Amount to be borrowed $8,900

hence, the amount must be borrowed is $8,900

4 0

3 years ago

You wish to buy a cabin in 15 years. TODAY, the cabin costs $150,000. You believe the price of the cabin will inflate at 4% annu

vfiekz [6]

Answer:

I will need to invest 64,669.73 dollars now.

Explanation:

We will calcualte the future value of the cabin considering the inflation:

$Principal \: (1+ inflation )^{time} = Amount$

Principal 150,000.00

time 15 years

inflation 0.04000

$150000 \: (1+ 0.04)^{15} = Amount$

Amount 270,141.53

Then we calculate the present value of the lump sum at 15 years discounted at 10% which is the yield of the funds

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 270,141.53

time 15 years

rate 0.10

$\frac{270141.53}{(1 + 0.1)^{15} } = PV$

PV 64,669.73

we would need to deposit 64,669.73 today to get enough cash to purchase the bcabin in 15 years.

5 0

3 years ago

A Japanese investor can earn a 1 percent annual interest rate in Japan or about 4.1 percent per year in the United States. If th

Whitepunk [10]

Answer: 97.99

Explanation:

The one-year forward rate that an investor would be indifferent between the U.S. and Japanese investments will be:

= Spot rate × (1 + Japanese rate / 1 + U.S rate)

= 101 × (1 + 1% / 1 + 4.1%)

= 101 × [(1 + 0.01) / (1 + 0.041)]

= 101 × (1.01/1.041)

= 101 × 0.9702209

= 97.99

4 0

3 years ago