Answer:
3. Correctly ignored a sunk cost
Explanation:
Sunk costs refer to those costs which have been incurred in the past, which are non recoverable and which have no current or future benefits.
Sunk costs are considered as irrelevant for decision making process as they do not relate to current period and have no future implications. For example, research and development expenditure incurred in the past represents a sunk cost.
In the given case, the ticket for opera was already purchased for $100 which can now neither be recovered nor transferred. Thus this cost is irrelevant for decision making as expenditure has already been made. When Shen decided to go for a party instead of the concert, Shen has correctly ignored a sunk cost.
Answer: D
Explanation: I just took the test
Answer:
$14,832
Explanation:
Depreciation charge = 2 x SLDP x BVSLDP
where,
SLDP = 100 ÷ useful life = 20 %
and
BVSLDP = Cost or Net Book Value
therefore,
1st year
Depreciation charge = 2 x 20 % x $61,800 = $24,720
2nd year
Depreciation charge = 2 x 20 % x ($61,800 - $24,720) = $14,832
conclusion
the amount of depreciation for the second full year is $14,832
Answer:
In this problem it is necessary to propose and solve the following system of equations:
0.15 X + 0.10 Y + 0.06 Z = 0.09 * 250,000 (1)
X + Y + Z = 250,000 (2)
Z = 2 ( X + Y ) (3)
Being the variables
X = $ invested in high-risk stocks
Y = $ invested in medium-risk stocks
Z = $ invested in low-risk stocks
Explanation:
Equation (1) tells us that the sum of the amounts invested in each type of action multiplied by its expected return, is equal to the return that is desired for the entire investment (9% of $ 250,000).
Equation (2) says that the sum of the investments must be equal to the money available to invest.
Equation (3) requires that money invested in low-risk shares (Z) be equal to twice the amount invested in the other two categories.
