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k0ka [10]
3 years ago
15

Zach has decided to start his own photography studio. To purchase the necessary equipment, Zach withdrew $10,000 from his saving

s account, which was earning 3% interest, and borrowed an additional $5,000 from the bank at an interest rate of 8%. What is Zach's annual opportunity cost of the financial capital(implicit + explicit)that has been invested in the business?
Business
1 answer:
Serga [27]3 years ago
3 0

Answer:

Zach's annual opportunity cost of the financial capital(implicit + explicit)that has been invested in the business is $700.        

Explanation:

opportunity cost = 3%($10,000) +8%($5,000)

                           = $300 + $400

                           = $700

Therefore, Zach's annual opportunity cost of the financial capital(implicit + explicit)that has been invested in the business is $700.        

   

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Boston Pizza wants to determine how effective its retail space is compared to other pizza establishments in the local area. The
Sidana [21]

Answer:

Answer to this question is 'Sales per square foot'.

Explanation:

To determine the effectiveness of any retail space, the sale per square foot is to be calculated. Sales per square foot is a measure that is used to calculate the revenue that any retail store is able to generate for each foot in their given retail space. Sales per square foot is calculated by dividing 'Total Net Sales' with the 'Total Floor Area' of the given retail store. Therefore, the calculation of the indicator is arrived at by determining the Sales per square foot for its store.

5 0
3 years ago
Which factors do you think are more to blame for obesity: individual actions or social factors like food marketing? Why?
Luba_88 [7]
Individual actions becuase its not the fault of the food marketing they only sell food for you and you decide what to buy there
5 0
3 years ago
Help me please I need this for my next class
mr_godi [17]
Construct Protective systems and evaluate soil conditions and provide safe access in and out of the evacuation in and inspect the site daily at the start of each shift and provide protection if water accumulation is a problem
5 0
3 years ago
On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock of Tige Co. On that date, the book value of Ti
shusha [124]

Answer:

            Dr. Investments in Associates 250,000

            Cr.            Cash                                 500,000

          Dr. Cash                                   10,000

          Cr.            Investments in Associates 10,000

          Dr. Investments in Associates 50,000

          Cr.     Investment revenue                    50,000

Explanation:

The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.

An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.

- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.

- Jolley records the net income from Tige Co. as an increase to its Investment account.

4 0
4 years ago
Suppose that a business is considering two strategies: buy or sell. If economic conditions improve, then the strategies will ret
Leno4ka [110]

Answer:

The answer is: Following the expected value criterion the investor should choose the sell strategy.

Explanation:

The formula we use to calculate the expected return value of the different strategies is:

            ERV = ∑ (expected return x probability of occurrence)

The buy strategy has an expected return value of of 1%

ERV Buy = (10% x 33.3%) + (1% x 33.3%) + (-8% x 33.3%) = 1%

The sell strategy has an expected return value of of 1.67%

ERV Sell = (6% x 33.3%) + (2% x 33.3%) + (-3% x 33.3%) = 1.67%

8 0
3 years ago
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