Answer:
The capitalized cost will be "784,592".
Explanation:
The given values are:
Initial cost = $500,000
Annual operating cost = $20,000
Interest, i = 12% i.e., 0.12
Effective Two year interest rate, i₂ =
=
As we know,
Now on putting the estimated values in the above expression, we get
⇒
⇒
⇒
So that the above is the right answer.
The generic strategy in which an organization's advantage comes from being able to sell products at lower prices than its competitors is referred to as a low cost strategy.
<h3>What is low cost strategy?</h3>
Low-cost strategy is a pricing strategy characterized by low prices of goods and services using various saving methods. In a low cost strategy, the true winner is the company with the actual lowest cost in the market place.
The company here reduces real costs, which contributes to more customers and thus increases its sales.
Hence, the generic strategy in which an organization's advantage comes from being able to sell products at lower prices than its competitors is referred to as a low cost strategy.
Learn more about low cost strategy here : brainly.com/question/27124956
Answer:
C) consumers make choices that will leave them as satisfied as possible given their incomes, tastes, and the prices of goods and services available to them.
Explanation:
Economists adopt the principle of rationality of economic agents. Thus, consumers make their consumption decisions rationally, based on their preferences and the price of goods and services offered. This will be done to the best of our ability in view of each consumer's budget constraint. Thus, with the value of their income, the consumer will buy the basket of products that best benefits and satisfaction.
Answer:
The amount of the annual payment that Sara must make at the end of each year for 13 years is 1265.75
Explanation:
future value = $23900
FVA(6%,13) = ((1.06^13) - 1)/0.06)
= 18.88214
amount of annuity payment = future value/FVA
= 23900/18.88214
= $1265.7464
Therefore, The amount of the annual payment that Sara must make at the end of each year for 13 years is 1265.75