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katrin [286]
3 years ago
5

g Suppose a worker with an annual discount rate of 8 percent currently resides in Chicago and is deciding whether to remain ther

e or to move to Phoenix. There are three work periods left in the life cycle. If the worker remains in Chicago, he will earn $40,000 in each of the three periods. If the worker moves to Phoenix, he will earn $43,500 in each of the three periods. What is the highest cost of migration that a worker is willing to incur and still make the move
Business
1 answer:
Annette [7]3 years ago
4 0

Answer:  $9,741.43‬

Explanation:

The highest cost of migration that the worker is willing to incur is the one that will equate the present value of the salary in Phoenix to the salary in Chicago.

Chicago = 40,000 + 40,000/(1 + 8%) + 40,000/ (1 + 8%)^2

= $111,330.59

Phoenix = 43,500 + 43,500/(1 + 8%) + 43,500/ (1 + 8%)^2

= $121,072.02

Hoghest cost of migration = 121,072.02 - 111,330.59

= $9,741.43‬

If the Cost of migration exceeds $9,741.43‬, the worker should stay in Chicago.

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The problem with adopting a fair-return pricing policy for a natural monopoly is that Multiple Choice economic profits will be p
ASHA 777 [7]

Answer:

it is not allocatively efficient

Explanation:

Monopoly is a market condition where one seller has all the market share. This leads to an inefficient market structure, an increase in the prices of goods and services and abnormal profits. A problem with adopting a fair return polity for a natural monopoly is that it is not allocatively efficient. In a monopoly, goods and services are not produced to help the economy or people.

7 0
3 years ago
Which of the following falls outside of the classification of business expenditures that fall into the category of variable cost
yuradex [85]

The option that falls outside of the classification of business expenditures that fall into the category of variable costs is option C. costs of research and development. Read below about costs of research and development.

<h3>What is a costs of research and development?</h3>

These are costs taken to develop new products or processes that may or may not result in commercially viable items. The general rule is that research and development costs are to be expensed immediately when the costs are incurred.

Therefore, the correct answer is as given above.

learn more about costs of research and development: brainly.com/question/18685415

#SPJ1

4 0
2 years ago
Another name for economic resources is?
AlladinOne [14]

Answer:

As far is I know, the anwser is B

7 0
3 years ago
Read 2 more answers
The following totals for the month of June were taken from the payroll register of Arcon Company: Salaries expense $14,000 Socia
Eva8 [605]

Answer:

Option B is the correct answer,a credit to salaries payable for $10,350

Explanation:

First of all,the net payment of salaries of Arcon Company equal the gross salaries expenses of $14,000 minus the deductions except the federal unemployment tax of $210

Net pay=$14,000-$1,050-$2,600=$10,350

In to record the salaries,the salaries expense account would be debited with $14,000 while the social security and medical taxes payable and federal income taxes payable account are credited with $1,050 and $2,600 respectively.

The net pay of $10,350 is credited to salaries payable in expectation of actual payment

4 0
3 years ago
O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual, not semiannual yiel
kiruha [24]

Answer:

7.84%

Explanation:

Given:

Bond's par value (FV) = $1,000

Maturity (nper) = 25 × 2 = 50 periods (since it's semi-annual)

YTM (rate) = 0.0925÷2 = 0.04625 semi annually

Price of bond (PV) = $875

Calculate coupon payment (pmt) using spreadsheet function =pmt(rate,nper,-PV,FV)

PV is negative as it's a cash outflow.

So semi- annual coupon payment is $39.20

Annual coupon payment = 39.2×2 = $78.40

Nominal Coupon rate = Annual coupon payment ÷ Par value

                                     = 78.4 ÷ 1000

                                     = 0.0784 or 7.84%

4 0
3 years ago
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