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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

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The ledger of American Company has the following work in process account. Work in Process—Painting 5/1 Balance 3,690 5/31 Transf
liubo4ka [24]

Answer:

How many units are in process at May 31?

physical units ending WIP:            740

equivalent units WIP materials:    740

equivalent units WIP conversion: 296

Explanation:

We will add the beginning and started units, then subtract the trasnaferrd out to get the ending WIP inventory.

physical units:

beginning             490

started                1,650

transferred-out<u> (1,400) </u>

ending                  740

Now we will multiply by the percentage of completion to get the equivlent units of WIP on each category:

<u>equivalent units for ending WIP:</u>

materials    740 x 100% = 740

conversion 740 x 40% = 296

4 0
3 years ago
which type of economy are individuals least likely to determine which products they consume, and why?
Ket [755]
That would be a command economy because in this economy type the government has complete control over all economic decisions. vote me brainliest :)
3 0
3 years ago
If the price of cotton used in making blue jeans increases, which of the following will occur? a. The supply curve for jeans wil
Vanyuwa [196]

Answer:

a. The supply curve for jeans will shift leftward.

Explanation:

If the price of cotton used in making blue jeans increases, The cost of production would increase. This would discourage production and supply would fall. The fall in supply would shift the supply curve to the left.

Only a change in the price of blue jeans would lead to a movement along the demand curve for blue jeans.

I hope my answer helps you

5 0
3 years ago
“Business may be owned by an individual or a group of persons.” In the light of the
BabaBlast [244]
A successfull investment

4 0
3 years ago
Martha signs a listing agreement with Broker Patrick. Which of the following would probably not be found in the agreement they s
andriy [413]

Answer:

. Martha's average utilities

Explanation:

As it is mentioned in the information Martha has signed the listing agreement, a listing agreement is an agreement which is signed between the broker and owner.

The significance of listing contract is that the owner allowing the broker to work for the owner as an agent to sell the property.  so it must include broker commission, Martha's property price and duration of the contract

3 0
3 years ago
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