Answer:
$30,000
Explanation:
Lara Technologies could invest the 250,000 in exchange of a 12% return, therefore, the opportunity cost would be:
$250,000 x 12% = $30,000
$30,000 dollars in returns is what Lara Technologies would give up if it purchased the land instead of investing the money.
Answer:
Classified (Or Multi-Step) Income Statement
Explanation:
A Classified Income Statement states the income a company has made in a certain time frame, including revenue, expenses, and profits of an organization or company.
is a short description of an ideaor product that you pitch to a company that you hope they will buy or invest in
question answered by
(jacemorris04)
Answer:
Difference = $9773.02
Explanation:
An annuity is a series of cash flows or payments that are of constant amount, occur after equal intervals of time and are for a limited and defined period of time. Thus, the winnings from lottery are an annuity as they pay a fixed amount $11300 every year for 21 years.
The annuity can be of two types namely ordinary annuity and annuity due. In ordinary annuity the cash flows occur at the end of the period and in annuity due, the cash flows occur at the beginning of the period. When we calculate the present value of these cash flows, it is understood that the present value of annuity due is greater than the present value of ordinary annuity.
The formulas for the present value of both ordinary annuity and annuity due are attached.
In the formula, R is the annuity payment or cash flow and i is the relevant interest rate and n is the number of years or periods.
PV of annuity ordinary = 11300 * [ (1 - (1+0.1)^-21) / 0.1 ]
PV of ordinary annuity = $97730.24548 rounded off to $97730.25
PV of annuity due = 11300 * [ (1 - (1+0.1)^-21) / 0.1 ] * (1+0.1)
PV of annuity due = $107503.27
Difference = 107503.27 - 97730.25
Difference = $9773.02
Diversification strategy is American tile corp. using when it acquires a company that makes industrial cleaning products that American tile does not currently offer.
When businesses want to expand, they use a diversification approach. In order to boost revenues, it is a practice to add a new product to your supply chain. These goods may represent a new subset of the market that your organization already serves, a strategy known as business-level diversification.
One of the four growth techniques popularized by Igor Ansoff is diversification. One of these growth techniques is more likely to work for your firm than the others, depending on the sector, size, and ambition of your business. As follows:
Product Development
Penetration
Market Diversification and
Development
Learn more about Diversification here
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