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2 years ago

Some examples of opportunity costs that should be included in project analysis are?

1 answer:

4 0

Some examples of opportunity costs that should be included in project analysis are that, skilled employees who are moved from an existing project to the new project causing a loss in the existing project.

Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. Opportunity cost is a great tool for project selection in many organizations.

The opportunity cost is the difference between the net value of the path that was chosen and the net value of the best alternative that was not chosen.

There is an example of opportunity cost which should be included in the project analysis. The situation where skilled employees are moved from an existing project to the new project causing a loss in the existing project, should be analyzed.

Hence, the answer was given and explained above.

To learn more about the opportunity cost here:

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Honest Abe’s is a chain of furniture retail stores. Integral Designs is a furniture maker and a supplier to Honest Abe’s. Honest

valentinak56 [21]

Answer:

The cost of capital according to CAPM method for Abe will be 12.46%

Their project will be evaluate with this rate.

Explanation:

It will use the CAPM to evaluate the project, as there is no debt, the WACC is not needed.

$Ke= r_f + \beta (r_m-r_f)$

rf = risk free 0.035

rm = market rate

premium market = (market rate - risk free) = 0.08

beta(non diversifiable risk) 1.12

$Ke= 0.035 + 1.12 (0.08)$

Ke 0.12460 = 12.46%

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3 years ago

how can electricity, communication, and transportation facilities indicate the potential for industrial growth?

Dima020 [189]

Answer:

The more electricity, communications, and transportation used in a nation's economy, it will give them a more developed country and a greater potential for increased industrialization.

Explanation:

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3 years ago

Which type of fund should you consider if you're seeking high long-term returns and can tolerate the normal ups and downs of the

guapka [62]

Answer:

growth funds

Explanation:

If you have done enough research in a particular company to invest in them then growth funds do generate a lot of profit however they are a bit risky.

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3 years ago

Read 2 more answers

Which of the following is TRUE regarding the economic order quantity (EOQ) model? A. Demand rate is dependent on order quantity.

Oduvanchick [21]

Answer:

D. Holding cost per unit per year is dependent on the selling price per unit.

Explanation:

The formulas are shown below:

Economic order quantity:

= $\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

The number of orders would be equal to

= Annual demand ÷ economic order quantity

The average inventory would equal to

= Economic order quantity ÷ 2

The total cost of ordering cost and carrying cost equals to

Ordering cost = Number of orders × ordering cost per order

Carrying cost = average inventory × carrying cost per unit

If in the question, the carrying cost is given in the percentage than the per unit cost is come after multiplying it with the selling price per unit

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3 years ago

Later, the teaching assistant in Bob's chemistry course gives him some advice. "Based on past experience," the teaching assistan

77julia77 [94]

Answer:

1 hour working on problems, 3 hours reading

Explanation:

the question is not complete:

Bob is a hard-working college freshman. One Tuesday, he decides to work nonstop until he has answered 200 practice problems for his chemistry course. He starts work at 8:00 AM and uses a table to keep track of his progress throughout the day. He notices that as he gets tired, it takes him longer to solve each problem.

Time Total Problems Answered Marginal gain

8:00 AM 0

9:00 AM 80 80

10:00 AM 140 60

11:00 AM 180 40

Noon 200 20

Since Bob's is able to answer more than 70 questions per hours only during one hour (from 8 to 9 AM), he can benefit more from reading the next 3 hours. Reading would be equivalent to answering 210 questions, while Bob was only able to answer 120 more questions in the following 3 hours.

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3 years ago