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kupik [55]
4 years ago
13

Jarrett company is considering a total cash outlay of $300,000 for the purchase of land, which it could lease out for $36,000 pe

r year. if alternative investments are available that yield a 9% return, the opportunity cost of the purchase of the land is
a. $36,000
b. $9,000
c. $27,000
d. $72,000
Business
1 answer:
Lynna [10]4 years ago
5 0

Answer: b. $9,000

There are 2 alternatives for Jarret company. If it will choose the first, the land will give it a profit of $36,000 per year. If it chooses the second, the profit will be 9% of $300,000 or $27,000.

Opportunity cost is ($36,000-$27,000) or $9,000 which is the loss of potential gain from option 1 when one alternative is chosen.


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3 years ago
What is the meaning of deplation​
slava [35]

Answer: The meaning of depletion to allocate the cost of extracting natural resources like oil and minerals from the earth.

Explanation:

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3 years ago
In January of 2015, the appropriate construction cost index had a value of $3,260. In January of 2005, the value was $1,746. In
Dennis_Churaev [7]

Answer:

11.63 million dollar

Explanation:

In 2005 the construction cost index was 1746 , in 2015 , it was 3260.

change in index in 10 years  = 3260-1746 = 1514

change in 5 years ( estimated ) = 757

Estimated index in 2010 = 1746 + 757

= 2503

Estimated index in 2020  = 3260 + 757

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Value of building in 2010 = 1746 million dollar

Value of similar building - X

X / 1746 = index in 2020 (probable ) / index in 2010

X / 7.25 = 4017 / 2503

X = 11.63 million dollar

8 0
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Answer:

The correct answer is letter "C": continuous.

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3 years ago
Inflation does not affect both local and international business true or false
ziro4ka [17]

Answer:

true

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8 0
2 years ago
Read 2 more answers
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