1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aleksandrvk [35]
3 years ago
5

A company had a choice between Project X and Project Y. The net present value of Project X is $1,000,000, and the net present va

lue of Project Y is $750,000. The company chose Project X. What is the opportunity cost of that decision?
Business
1 answer:
vekshin13 years ago
8 0

Answer:

The opportunity cost of that decision is - $250,000

Explanation:

For computing the opportunity cost, we have to use the formula of opportunity cost which is shown below:

= Return of project which is not chosen - the return of a chosen project

= $750,000 - $1,000,000

= - $250,000

Since in the question, it is given that the chosen project is X so we write the project X amount in the formula and the not chosen project of-course is Y.

Hence, the opportunity cost of that decision is - $250,000

You might be interested in
What is meant by trading on the equity? (b) how would you determine the profitability of trading on the equity? chegg.
aleksklad [387]

Answer:

Trading on equity defines the increase in profit earned by the equity shareholders due to presense to financial charges.

When a company is higher the rate of interest on borrowed funds.so company should option for trading on equity.

Explanation:

<em>h</em><em>o</em><em>p</em><em>e</em><em> </em><em>i</em><em>t</em><em> </em><em>h</em><em>e</em><em>l</em><em>p</em><em>s</em><em> </em><em>u</em><em /><em />

4 0
2 years ago
1. In each of the following situations, identify which of the twelve principles is at work
aleksklad [387]

Answer:

a. The true cost of something in its cost of opportunity

Explanation:

Opportunity cost is the cost which is defined as the cost or expense of one item which is lost in order to get the opportunity to do or to consume something else. In simple words, it is the value or the cost of the next best available alternative.

So, when the person select to bought the textbooks through Chegg instead paying the higher price for the same books through the bookstore. Under this situation, the principle applies is the cost of something in its opportunity cost.

8 0
2 years ago
sales forecasts . multiple select question. should not be used for audit decisions help auditors understand management's strateg
Anna [14]

Sales forecasts <u>help auditors understand </u><u>management's strategy</u>

<u>can be used in valuing </u><u>inventory</u>

<u />

What are sales forecasts?

A sales forecast is an indication of predicted sales revenue. What your business expects to sell during a specific time period is estimated by a sales forecast (like a quarter or year). The most accurate sales projections do this. By providing knowledge of the probable behavior of your most valued clients, sales forecasting aids in achieving this revenue efficiency. In addition to enhancing pricing, advertising, and product development, you may forecast future sales. The ability of your business to predict future revenues across particular time periods in order to better manage resources is one of the benefits of sales forecasting.

To learn more about sales forecast click on the given link:

brainly.com/question/29110387

#SPJ1

4 0
1 year ago
Around the world oil is priced consistently in United States dollars. In economic terms this is an example of:
Zina [86]

Answer: unit of account

Explanation:

The unit of account is function of money which refers to the standard monetary unit of measurement of a good or service.

Since oil is priced consistently in United States dollars around the world, this means that dollars is the standard monetary unit of measurement and is therefore, the unit of account.

8 0
2 years ago
Portman Corporation has retained earnings of $675,000 at January 1, 2014. Net income during 2014 was $1,400,000, and cash divide
mafiozo [28]

Answer:

attached below

Explanation:

3 0
3 years ago
Other questions:
  • Reinforcement ,contact ,honesty and fair expection are
    15·2 answers
  • "george gets paid on fridays for a week's work; mai ling gets paid for every five wedding veils she completes. george is on a __
    11·1 answer
  • Dell first chooses whether to offer Symantec $30 or $20 for each copy of its software, and then Symantec responds by either acce
    14·1 answer
  • Time value Personal Finance Problem Jim Nance has been offered an investment that will pay him ​$500 three years from today.
    8·1 answer
  • Straight Arrow unloaded two tankers worth of toxic waste at an important port in the country of Urithmea. A hundred workers work
    9·1 answer
  • Difference between money paid to and money received from other nations in trade is called balance of trade.
    6·2 answers
  • Most people recognize that, as a group, consumers are the pivotal participants in the economy, The _____________decisions made b
    5·1 answer
  • At which stage of the business cycle would the economy be at when GDP begins to rise and the unemployment rate begins to fall?
    15·1 answer
  • A company's current assets are $26,420, its quick assets are $15,090 and its current liabilities are $12,520. Its acid-test rati
    13·1 answer
  • firms should emphasize the importance of consistently good customer service to its employees so that good customer service becom
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!