A math formula in economics

Explicit cost is an out-of-pocket cost that a person incurs to carry out a particular business activity. It is sort of, a business-related expense for which the business pays. In Ziva's case, it is $130, the cost of the seeds

Implicit costs are opportunity costs. An opportunity cost refers the benefits an individual, investor or business misses out on when opting for one alternative in preference of another. In our case, it amounts to $250($25*10 hours)

Thus, Ziva's cost of farming

= $130 +( $25*10) = $130 +$250 = $380

5 0

2 years ago

Consider the three mutually exclusive alternatives below. Determine which alternative is preferable at an interest rate of 9% pe

laila [671]

Answer:

a. AW, A($) = 79646

b. AW, B ($) = 29,367

c. AW, C ($) = 80738

Explanation:

Solution:

First of let's sort out the data given for all three alternatives:

Alternative A:

Capital Investment = $400,000

Annual Expense = $189,000

Annual Revenue = $309,000

Salvage Value = $65,000

Life = 24 Years

Alternative B:

Capital Investment = $230,000

Annual Expense = $122,500

Annual Revenue = $222,500

Salvage Value = $180,000

Life = 5 Years

Alternative C:

Capital Investment = $150,000

Annual Expense = $134,000

Annual Revenue = $234,000

Salvage Value = $130,000

Life = 12 Years

a.

AW, A($) = - 400,000 x A/P(9%, 24) + (309,000 - 189,000) + 65,000 x P/F(9%, 24) x A/P(9%, 24)

AW, A($) = - 400,000 x 0.103 + 120,000 + 65,000 x 0.1264 x 0.103

AW, A($) = - 41,200 + 120,000 + 846.25

AW, A($) = 79646

b.

AW, B ($) = -230,000 x A/P(9%, 5) + (222,500 - 134,000)

AW, B ($) = -230,000 x 0.2571 + (222,500 - 134,000)

AW, B ($) = 29,367

c.

AW, C ($) = - 150,000 x A/P(9%, 12) + (234,000 - 134,000) + 130,000 x P/F(9%, 12) x A/P(9%, 12)

AW, C ($) = - 150,000 x 0.1397 + 100,000 + 130,000 x 0.3555 x 0.1397

AW, C ($) = - 20,955 + 100,000 + 1,692.50

AW, C ($) = 80738

7 0

2 years ago

In the role of a cultural steward, an HR manager primarily:A. administers day-to-day work of managing people.B. facilitates an o

statuscvo [17]

Answer:

(B) facilitates an organization’s culture and helps to build and strengthen or change that culture.

Explanation:

HR manager here refers to human resources manager, someone whose duties tend to revolve in the management and development of a company’s employees. There are many roles that an HR manager can take, from administrative expert (as described by option A), business partner (as described by option D & E), and of course, a cultural steward.

3 0

3 years ago