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
AleksAgata [21]
3 years ago
8

A recent college graduate from Clayton State University has the choice of buying a new car for $33,500 or investing the money fo

r four years with an 11% expected annual rate of return. He has an investment of $41,000 in equities and bonds which yields 8% expected annual rate of return. If the graduate decides to purchase the car, the best estimate of the opportunity cost of that decision is
Business
1 answer:
Mandarinka [93]3 years ago
6 0

Answer:

$3,280

Explanation:

The annuity factor of 11% at four years will be;

annuity = (1 - 1 / (1 +r)^n ) / r

annuity = 3.102

P = Pmt * annuity

P = 41,000 * 3.102

P = 127,182

If college graduate decided to buy a car then the annual yield that he receives from the investment in bonds will be opportunity cost.

$33,500 * 8% = $3,280

You might be interested in
Tone is the ______ attitude toward the subject or audience.
e-lub [12.9K]
I think it’s author/character
5 0
4 years ago
Read 2 more answers
Abc buys widgets for $5 cash and sells them on account for $8. At the point of sale, what is the effect on the cash flow of abc?
s2008m [1.1K]

At the point of sale, there is an increase in the effect on the cash flow of abc.

What is cash flow?

A cash flow is a real or virtual movement of money.

  • A cash flow in its narrow sense is a payment (in a currency), especially from one central bank account to another; the term 'cash flow' is mostly used to describe payments that are expected to happen in the future, are thus uncertain and therefore need to be forecast with cash flows.
  • A cash flow is determined by its time t, nominal amount N, currency CCY and account A; symbolically CF = CF(t,N,CCY,A).
  • It is however popular to use cash flow in a less specified sense describing (symbolic) payments into or out of a business, project, or financial product.
  • Cash flows are narrowly interconnected with the concepts of value, interest rate and liquidity. A cash flow that shall happen on a future day t(N) can be transformed into a cash flow of the same value in t(0).

To learn more about cash flow: brainly.com/question/10714011

#SPJ4

6 0
2 years ago
Genova Corporation has a four year 10% annual coupon bond. The price of the bond is $956.12. The Yield to Maturity is 11.43%. Wh
lbvjy [14]

Answer:

10.46%

Explanation:

Data provided in the question

NPER = 4 years

Price of the bond is $956.12

Yield to maturity is 11.43%

Coupon rate = 10%

We assume the face value be $1,000

So the coupon payment is

= Face value × Coupon rate

= $1,000 × 10%

=  $100

Now the current yield on this bond is

= Coupon payment ÷ Price of the bond

= $100 ÷ $956.12

= 10.46%

8 0
3 years ago
Why do companies want employees who have good public-speaking skills
notsponge [240]
To have happy consumers and welcoming them so they can come back knowing that the company has really good customer service and which is a huge thing in owning a business. If you can communicate to your consumers then its pretty bad.
5 0
3 years ago
Read 2 more answers
Does a sole proprietor need a business license
Andreas93 [3]

Answer: Yes

Explanation: A sole proprietor is a person who is running an entrepreneurship on his own. in a sole proprietorship the law see the owner and the entity as one person and not as separate entity.

To operate their business legally a sole proprietor needs to have a general business license. It is usually required for those proprietors who have taxpayer identification number.

3 0
4 years ago
Other questions:
  • Akers Company sold bonds on July 1, 2017, with a face value of $100,000. These bonds are due in 10 years. The stated annual inte
    11·1 answer
  • When considering the impact of individual consumption levels on a country's economic health, which segment of the population is
    9·1 answer
  • A postsecondary school that does not have a set of admission requirements such as a minimum GPA or test scores is called
    11·1 answer
  • Wen's Noodles wants to increase the quantity of noodles that it sells by 20 percent. The price elasticity of demand for noodles
    10·1 answer
  • No variable overhead is incurred or budgeted. The expected cash balance at the end of the current year is $3,500. Disbursements
    8·1 answer
  • Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $
    13·2 answers
  • Identify and explain two advantages to ruby of having part-time employees​
    6·1 answer
  • Which stage in the product life cycle often sees a business spending a lot of
    10·1 answer
  • If you are e-filing your tax returns, explain why it is beneficial to file your federal and state taxes through the same e-filin
    7·1 answer
  • According to the strong form of efficient market hypothesis: Multiple Choice Private information is of no help in earning abnorm
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!