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
lawyer [7]
3 years ago
7

A firm decides to expand its operations and use more square footage in their main office. Currently, they rent out 3000 square f

eet of space at a rate of $3,431.00 per month. The new expansion will use this space. The firm has a cost of capital of 9.00% APR. If the tax rate is 35.00% facing the firm, what is the opportunity cost of using this space?
Business
1 answer:
Andrej [43]3 years ago
4 0

Answer: $297,353.33

Explanation:

In calculating the Opportunity Cost of using that space with the available data, the following formula can be used (notice that APR is a yearly figure and the rent is monthly),

Opportunity cost = Rent per month *12* (1-tax rate) / APR

= $3,431.00 * 12 * ( 1 - 0.35) / 0.09

= 297353.333333

= $297,353.33

$297,353.33 is the opportunity cost of using this space.

Note the method used above is the faster method but if you want to use the other method, first you change the rent to a monthly figure. Then you divide it by the cost of capital to get the present value. Then you multiply by the After tax rate of (1 - tax rate). It's basically the same as the above though.

You might be interested in
Free brainliest to first person
yarga [219]

Answer:

Hi

Explanation:

8 0
3 years ago
Read 2 more answers
Why would a person with conductive hearing loss hear the tuning fork through bone conduction longer than or equally as long as t
UNO [17]

Answer:

Speech understanding would have an effect hugely particularly if the hearing loss is merely in one range. This would let the person to not pick up or hear some letters articulated and perhaps not be able to put them together. For instance, l, m, and n are central range pitches and s and f are high range pitches. 

5 0
3 years ago
Java Jane's first coffeehouse was very successful due to the unique flavors, on-site baked goods, and inviting ambiance. The own
Basile [38]

Answer:

A contractual marketing system

Explanation:

Java Jane's most likely adopted a contractual marketing system.The contractual system is a vertical marketing system in which all the companies involved tend to work independently as individual entities. Regardless of working independently, they also work together to achieve greater goals and efficiencies.

They are also known as value-added partnerships since they work hand in hand to create value for other entities that are involved

8 0
4 years ago
Without actually saying what was wrong with the program, beth alluded to
Natasha_Volkova [10]
Without actually saying what was wrong with the program, Beth alluded to walking around the space. Jerry is lucky with a lady and Beth recalls her childhood. After learning that a father of one her childhood friends, Tommy, is set to be executed for the murder of the said friend, Beth remembers how she tried to deal with his disappearance via imagining that he got lost in her imaginary international referred to as "Froopyland" and laughs at how stupid it becomes.
6 0
4 years ago
Helmert Federal, a financial institution, acquires its funds primarily from the deposits of its customers, and then uses these f
Ghella [55]
<h3>Helmert Federal is a savings and loan association </h3>

Explanation:

A Savings and Loan Association (S&L), or thrift service, is a financial institution specialized in taking savings deposits and making mortgages and other loans. A savings and loan company (S&L) has today been one of the main sources of home buyers ' mortgage loans.

In the specified example, Helmert Federal acquires its funds mainly from its customers ' deposits, and then uses those funds to make individuals ' mortgage loans is a form of savings and loan association.

6 0
3 years ago
Other questions:
  • Next week, Super Discount Airlines has a fight from New York to Los Angeles that will be booked to capacity. The airline knows f
    11·1 answer
  • 5. Firm Q is about to engage in a transaction with the following cash flows over a three-year period: Year 0 Year 1 Year 2 Reven
    7·1 answer
  • The problem with average-cost pricing regulation is that once it is in place, there is a tendency for the:________
    8·1 answer
  • Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,000
    13·1 answer
  • As You Like It Inc. customizes its offers to each individual consumer. This practice of tailoring products and marketing program
    5·1 answer
  • Determine whether the following arguments are best interpreted as being inductive or deductive. Also state the criteriayou use i
    6·1 answer
  • Interim financial statements: Multiple Choice Are required by the Congress. Are necessary to achieve full disclosure about a bus
    13·1 answer
  • The following information relates to Ivanhoe Co. for the year ended December 31, 2020: net income $1,180 million; unrealized hol
    10·1 answer
  • determine and describe ten best practices for managers competing in the global environment, challenged with diversity, global ec
    11·1 answer
  • Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!