All categories

1 year 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:

brainly.com/question/12121515

#SPJ4

You might be interested in

Who is affected negatively when a country’s currency is weak? Give domestic and foreign examples

fomenos

Its citizens, and government.

5 0

2 years ago

Suppose the interest rate on a 1-year T-bond is 5.00% and that on a 2-year T-bond is 7.00%. Assume that the pure expectations th

Tasya [4]

Answer: 9.04%

Explanation:

1 year rate today = 5% = 0.05

2 years rate today = 7% = 0.07

Maturity of longer bond = 2

The ending return if the 2 years bond are bought will be thesame as the needed return on series of a year bond which will be 1.1449

The market's forecast for 1-year rates 1 year from now will be calculated as:

= 1.05(1+X) = 1.1449

1.05 + 1.05X = 1.1449

1.05X = 1.1449 - 1.05

1.05X = 0.0949

X = 0.0949/1.05

X = 0.090381

X = 9.04%

5 0

2 years ago

A organization in which specialists from different parts of the organization are brought together to work on specific projects b

Genrish500 [490]

Answer:

Matrix organization structure

Explanation:

A matrix organizational structure is a work arrangement in which employees report to two or more supervisors rather than one line manager overseeing every project aspect. The reporting relationships are grid-like, with employees reporting to both product and functional managers. For example, an employee may have a direct manager they report to, plus one or more project managers they operate under.

The matrix organizational structure is useful when sharing skills across departments is necessary to complete a project.

8 0

2 years ago

Imagine that a local water company issued $10,000 ten-year bond at an interest rate of 6%. You are thinking about buying this bo

mylen [45]

Answer:

Explanation:

The $10,000 is the face value of the bond. Using a financial calculator, input the following to calculate the price at a year before maturity; i.e. at year 9;

Time to maturity; N = 10 - 9 = 1

Annual interest rate; I/Y = 9%

Annual coupon payment; PMT = 0

Face value of the bond; FV = 10,000

then compute present value ; CPT PV = $9,174.31

Therefore, you will pay less than $10,000 for the bond and the price would be as above $9,174.31

6 0

2 years ago

The Fed has decided to expand the money supply, leading to lower interest rates. As a partner in a tech start-up, you react to t

Alona [7]

Answer:

A, B and D

Explanation:

Expanding the money supply is an exercise of expansionary monetary policy.

This decision will first allow our tech startup to acquire cheaper loans and expand our operations, this expansion in operations will result in new employment opportunities and hence as a result, unemployment will be reduced assuming this is a general trend in the economy.

This decision also directly reflects an increased investment and hence the GDP on the whole and the investment part of GDP would both increase,

GDP = C + I + G + (X - M), where I = investment.

This change in macro economy will increase aggregate demand due to expansionary effects. Increase in imports is not conclusive as it may or may not happen depending upon the demand state.

Hope this helps.

8 0

2 years ago