Answer:
12%
Explanation:
Annual net income:
= Increase in annual revenue - Increase in annual costs
= $220,000 - $160,000
= $60,000
Average investment:
= (Initial investment + Salvage value at the end) ÷ 2
= (980,000 + 20,000) ÷ 2
= $500,000
Annual rate of return:
= (Annual net income ÷ Average investment) × 100
= ($60,000 ÷ $500,000) × 100
= 12%
Answer:
O D $0
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Since the land is worthless, there is no next best use of the land. Thus, its opportunity cost is zero.
I hope my answer helps you
Answer:
The correct answer is D: $10,329
Explanation:
Giving the following information:
You want to have the equivalent of $700,000 (in terms of today's spending power) when you retire in 30 years. Assume a 3% rate of annual inflation. The interest rate is 10% annual.
First, we need to determine how much is $700,000 in 30 years.
FV= PV*(1+i)^n
FV= 700000*(1.03^30)= $1,699,083.73
Now, we can calculate the annual payment required using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,699,083.73* 0.10)/[(1.10^30)-1]= $10329
Answer:
1. accounting records continuously disclose the amount of inventory.
Explanation:
The periodic inventory system is the accounting method of calculating the value of inventory at the end of a specified period of time. Under this system, updates are made on a periodic basis rather than after every sale or purchase of inventory. It continuously tracks the record of inventory by physically counting the inventory and the cost of inventory is calculated by using the inventory calculation method, such as FIFO, LIFO, and weighted averages.
Answer:
The fixed costs are too high. The marginal cost generally represents variable costs and they might be very low, but if the fixed costs are simply too high, they will need to increase the price of the plane tickets in order to break even. The break even formula is calculated by dividing total fixed costs by marginal revenue (selling price - variable costs).
