Answer:
The correct answer is $1,370
Explanation:
The computation of net present value is shown below:-
For computing the net present value first we need to find out the present value of inflow
Present Value of Inflow of 3 Years at 9% = Net cash flow × Number of years
= $27,800 × 2.5313
= $70,370
Net Present Value = Present value of inflow - Initial Outflow
= $70,370 - $69,000
= $1,370
Therefore for computing the net present value we simply deduct the initial outflow from present value of inflow.
Answer:
Hiring temporary workers and outsourcing work
Explanation:
Labour is a factor of production responsible for mental and physical efforts directed to production.
Labour shortage occurs when the demand for labor exceeds the supply. Labor shortage could lead to an increase in wages following the theory of demand. When demand exceeds supply, price tends to go up.
Labor shortage could be solved by hiring temporary workers or outsourcing work.
Temporary workers are workers that are employed for a specific period of time. Temporary staff are ad-hoc staff whose services are only needed at a particular time.
Outsourcing work is a situation where a company will hire another company or person to perform a task on their behalf. E.g, outsourcing the job of cleaners and security personnel to another company. It mean the company will bring its own staff to work in your company.
Temporary employment, whereby workers are engaged only for a specific period of time, includes fixed-term, project- or task-based contracts, as well as seasonal or casual work, including day labour.
If the going rate of interest were 10 percent and the expected profit rate were 18 percent, then the opportunity cost of a firm carrying out a $100,000 project for one year with its own funds would be$10,000.
SO
$100,000/10 =$10,000
Opportunity cost is the advantage that was lost because a particular option was not selected.
It is necessary to weigh the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs.
Opportunity costs have a value that can help people and businesses make more lucrative decisions.
Opportunity cost is a wholly internal expense that is only utilized for strategic consideration; it is not included in accounting profit and is not reported externally.
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This deal will be fully discharged when Leony pays Kali the $3000 for the car and Kali hands over her car to Leony so that Kali has the money and Leony has the car which means the transaction has been successfully completed.
