Answer: The correct answer is "c. bounded rationality".
Explanation: Jacob's decision is an example of bounded rationality, because according to the theory of limited rationality, people make decisions only partially in a rational way because of our cognitive, information and time constraints.
Answer:
b. Increase by $17,000
Explanation:
For computing the change in the operating income, first we have to determine the cost by make and buy options
Make options:
= Variable cost + fixed cost
= $70 + $60
= $130
Buy options:
= Outside supplier cost + fixed cost × remaining percentage
= $77 + $60 × 60%
= $77 + $36
= $113
So, the difference of cost would be
= $130 - $113
= $17
And, the operating income would be
= Number of units make in each year × cost difference
= 1,000 units × $17
= $17,000
Answer:
The amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows would be -$850 or $850 outflow
Explanation:
The computation of the cash flow from the operating activities for year 2 is shown below:
= Cash revenue in year 2 - interest on notes payable
= $950 - $1,800
= -$850
The negative amount shows an outflow of cash
.
The interest on the note payable is computed by
= Borrowed amount × interest rate
= $36,000 × 5%
= $1,800
Answer:
The NPV of this investment is $64,581.75
Explanation:
Hi, we need to discount to present value all the future cash flows, the formula to use is as follows:

Where
NPV = Net Present Value
CF = The cash flow stated in the problem by year
r= discount rate (in our case, 0.08 or 8%)
Now, let´s solve this.



So, the net present value of this project is $64,581.75
Best of luck.
Answer:
1. True
2. a & c
3. b
4. a, b & c
5. a, b & c
Explanation:
When you feel interested in math, it's likely accounting is suitable for you.
please read more articles about accounting in these links
https://www.accountingcoach.com/accounting-principles/explanation
https://studymoose.com/foundational-accounting-principles-and-terminology-essay
https://www.edx.org/course/management-accounting-acca-fma-f2-x-8