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2 years ago

An opportunity cost: Multiple Choice Is an unavoidable cost because it remains the same regardless of the alternativ

Business

1 answer:

Diano4ka-milaya [45]2 years ago

8 0

Answer:

Is the potential benefit lost by choosing a specific alternativecourse of action among two or more.

Explanation:

This question is incomplete. The complete question can be found here: https://www.chegg.com/homework-help/questions-and-answers/opportunity-cost--unavoidable-cost-remains-regardless-alternative-chosen-b-requires-curren-q10956439

Here is the complete question:

An opportunity cost:

Is an unavoidable cost because it remains the same regardless ofthe alternative chosen.

Requires a current outlay of cash.

Results from past managerial decisions.

Is the potential benefit lost by choosing a specific alternativecourse of action among two or more.

Is irrelevant in decision making because it occurred in the past.

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

An example of opportunity cost :

Martha has three options : Start her company, remain employed or go on vacation. If she leaves her job to start her company she would earn $5,000,000 per year. She earns $1 million where she works. She values vacation at $2 million.

If she decides to stay employed, her opportunity cost is $5 million. The amount she would have made if she started her company.

If she decides to start her company, her opportunity cost is $2 million. The amount she values vacation

Opportunity cost doesn't remain the same regardless of the option taken.

If martha wants to maximise profit , she would start her business because if yields the highest payoffs. Opportunity cost is relevant to making decisions.

I hope my answer helps you

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Blank is the deadline for filing both federal and state income tax returns.

Kay [80]

Answer:

April 15th

Explanation:

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3 years ago

Huai takes out a $3,600 student loan at 6.6% to help him with 2 years of community college. After finishing the 2 years, he tran

Alja [10]

Answer:

a. The monthly payment on loan 1 is $76.03.

b. The monthly payment on loan 2 is $411.69.

Explanation:

a. Calculate the monthly payment on loan 1.

To determine the amount of periodic payments, the present value of annuity formula should be used:

$PV=P(\frac{1-(1+r)^{-n} }{r} )$

Where:

PV= present value

p=periodic payment

i=rate of interest

n=number of periods

We get the data for this exercise:

PV= 3,600 (loan).

p= unknown (we must find this value)

i= 6.6% or 0.066. However, because we need to know the monthly payment, the interest rate should be divided by 12 (0.066 / 12).

n= 4 years and 7 months, that is 55 months.

And we replace in the formula:

$3600=P(\frac{1-(1+\frac{0.066}{12})^{-55} }{\frac{0.066}{12} } )$

$3600=P(\frac{1-(1+0.055)^{-55} }{0.0055} )$

$3600=P(\frac{1-(0.7395812268)}{0.0055} )$

$3600=P(\frac{0.2604187732}{0.0055} )$

$3600=P(47.348867)$

Therefore:

$P=\frac{3600}{47.348867}$

$P=76.03$

The monthly payment on loan 1 is $76.03.

b. Calculate the monthly payment on loan 2.

We get the data for this exercise:

PV= 11,600 (loan 2).

p= unknown (we must find this value)

i= 7.3% or 0.073. However, because we need to know the monthly payment, the interest rate should be divided by 12 (0.073 / 12).

n= 2 years and 7 months, that is 31 months.

And we replace in the formula:

$11600=P(\frac{1-(1+\frac{0.073}{12})^{-31} }{\frac{0.073}{12} } )$

$11600=P(\frac{1-(1+0.006083)^{-31} }{0.006083} )$

$11600=P(\frac{1-(0.8286047296)}{0.006083} )$

$11600=P(\frac{0.1713952704}{0.006083} )$

$11600=P(28.1761088936)$

Therefore:

$P=\frac{11600}{28.1761088936}$

$P=411.69$

The monthly payment on loan 2 is $411.69.

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3 years ago

What Amendments make up what are known as the Miranda Rights?

pantera1 [17]

I believe its B) the fourth and fifth

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2 years ago

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How can dishonest behavior affect your career

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2 years ago

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Use the following chart to explain how the amount of principal affects the total cost of the loan

german

Answer: The higher the principal, the higher the total cost of the loan

Explanation:

From the chart shown we can see that the loan with a higher principal has a higher total cost than the loan with the smaller principal.

This happens because the interest rate attached affects larger figures more than smaller ones. 6.47% of $6,000 is $389 which is larger than 6.47% of $5,000 which is $324 (calculating the cost of a loan is more cumbersome than this but this shows the effect as well).

When compounded overtime, this difference will be even more and thus shows that larger principals cause larger total costs.

7 0

2 years ago