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
Cloud [144]
2 years ago
15

7. Another example of opportunity cost is a company's cost of capital. Suppose a manufacturer wants to add

Business
1 answer:
vredina [299]2 years ago
6 0

Answer:

You should invest in US bonds because you will be able to earn a higher return than if you build and sell microwaves.

Explanation:

alternative 1, build and sell microwave ovens:

initial outlay = $500,000

net cash flow per year = $225,000 - $200,000 = $25,000

alternative 2, invest in US securities:

investment = $500,000

net cash flow per year = $500,000 x 10% = $50,000

Opportunity costs are the benefits lost or extra costs resulting from choosing one activity or investment over another.

If you choose to build and sell microwaves, you will not be able to invest in bonds, and therefore, your net income will decrease by $25,000 - $50,000 = -$25,000.

Instead, if you invest in bonds and not microwaves, your net income will increase by $50,000 - $25,000 = $25,000.

You might be interested in
HELP
vitfil [10]
I am pretty sure it is C
8 0
2 years ago
Read 2 more answers
Phil's Dinor purchased some new equipment two years ago for $32,600. Today, it is selling this equipment for $22,000. What is th
Sergio039 [100]

Answer:

(C) $19,776.80

Explanation:

The company will pay taxes for the difference between book value and sale value at disposal:

book value after 2 years:

It will be acquisition less accumulated depreciation, which is the sum of the MACRS depreciation rate for this two years

32,600 (1 - 0.20 - 0.32) = 32,600 x 0.48 = 15,648

sales price: 22,000

taxes: (22,000 - 15,648) x .35

          6,352 x 0.35 = 2,223.2

after tax cash flow: 22,000 - 2,223.2 = 19,776.8

3 0
3 years ago
Broze Company makes four products in a single facility. These products have the following unit product costs: Products A B C D D
Tems11 [23]

Omg that's lot sorry I don't know

4 0
3 years ago
Bart contributes $100,000 to the Fish Partnership for a 40% interest. During the first year of operations, Fish has a profit of
barxatty [35]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
7 0
3 years ago
Paraldehyde is an effective cns depressant but is probably not currently used because:
Sonja [21]

The reason why paraldehyde is not currently used is because of its side effects or down sides to the patients using it such as it provides a noxious taste that patients dislikes and it was able to provide an odor with the patient’s breath that isn’t pleasant. 

6 0
2 years ago
Other questions:
  • Receiving the medal of honor and making the dean's list are both examples of ________. value contradictions folkways positive sa
    12·1 answer
  • Using a fraudulent voice message to trick the receiver into revealing confidential data such as account numbers, passwords, or o
    9·2 answers
  • Employees should keep their cell phones on them at all times because they may have time to talk with friends and family througho
    14·1 answer
  • Drake Custom Cycles' common stock currently pays no dividends. The company plans to begin paying dividends beginning 3 years fro
    13·1 answer
  • Place the components of the M2 money supply in order, from smallest to largest
    8·1 answer
  • Gregory visited a prospect for the first time this morning, chatted a while with
    10·2 answers
  • Please help! <br><br>How can easy access to credit lead to Financial Mistakes and Bankruptcy?
    10·1 answer
  • Why is it important to invest for your retirement? please explain :p
    6·1 answer
  • This year Andrews achieved an ROE of 24.5%. Suppose next year the profit margin (Net Income/Sales) decreases. Assuming sales, as
    10·1 answer
  • A group is a number of people who
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!