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Arlecino [84]
2 years ago
5

Juanita is deciding whether to buy a skirt that she wants, as well as where to buy it. Three stores carry the same skirt, but it

is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $112 for the skirt: Store Travel Time Each Way Price of a Skirt (Minutes) (Dollars per skirt) Local Department Store 15 112 Across Town 30 89 Neighboring City 60 70 Juanita makes $26 an hour at work. She has to take time off work to purchase her skirt, so each hour away from work costs her $26 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
Business
1 answer:
shutvik [7]2 years ago
6 0

Answer:

It will puchase the skirt across town as it has the less economic cost.

Explanation:

We are going to add up the opportunity cost (lost wages) to the cost of the skirt:

                 travel-time* Price   **Opp. Cost    Economic Cost

local department    30     $ 112.00   $ 13.00           $ 125.00

across town          60     $ 89.00   $ 26.00   $ 115.00

neighboring city 120     $ 70.00   $ 52.00   $ 122.00

*travel-time we multiple the time it took each eway by 2

**Opp. Cost  = wages per hour x travel time / 60

Then, the economic cost is the sum of the value of the skirt and the lost wages.

We pick the lowest economic cost.

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Alpha Industries is considering a project with an initial cost of $9.7 million. The project will produce cash inflows of $1.67 m
vovikov84 [41]

Answer:

$660,000

Explanation:

WACC = [wD * kD * (1 - t)] + [wE * kE]

WACC = [(0.77 / 1.77)*6.12%* (1 - 0.40)] + [(1 / 1.77)*11.61%]

WACC = 1.60% + 6.56%

WACC = 8.16%

Present value of annuity = Annuity*[1-(1+interest rate)^-time period]/rate

Present value of annuity = $1.67*[1-(1.08156745763)^-9]/0.0816

Present value of annuity = $1.67*6.206374532

Present value of annuity = $10.36 million

NPV = Present value of inflows - Present value of outflows

NPV = $10.36 million - $9.7 million

NPV = $660,000

5 0
3 years ago
What is the first step in amending the Texas Constitution?
kolezko [41]

Answer:

The answer is below

Explanation:

According to Article 17 of the Texas Constitution which is otherwise known as "Mode of Amending the Constitution of This State"

The first step in amending the Texas Constitution is that the Texas State Legislature must make a proposition of the amendment in a joint resolution, involving both the Texas State Senate and the Texas House of Representatives. This joint resolution, however, can emerge in either the House or the Senate.

3 0
3 years ago
Assume Metro Company had a net income of​ $2,100 for the year ending December 2018. Its beginning and ending total assets were​
Sever21 [200]

Answer:

7.92%

Explanation:

The computation of the return on total assets is shown below:

Return on assets = (Net income) ÷ (average of total assets)

where,  

Net income is $2,100

Average total assets = (Beginning total assets + ending total assets) ÷ 2

= ($33,500 + $19,500) ÷ 2

= $26,500

Now put these values to the above formula  

So, the ratio would equal to

= $2,100 ÷ $26,500

= 7.92%

7 0
3 years ago
Who is the best image retouching service provider?
yawa3891 [41]

Answer:

ligma

Explanation:

4 0
2 years ago
You purchased shares of a mutual fund at a price of $20 per share at the beginning of the year and paid a front-end load of 6.0%
Feliz [49]

Answer:

1.99%

Explanation:

Calculation for your return if you sold the fund at the end of the year

Return={[$20 * (100%-6%) * (1.10 - .015)] -$20}/$20

Return={[$20 * .94 * (1.10 - .015)] -$20}/$20

Return = 1.99%

Therefore your return if you sold the fund at the end of the year would be 1.99%

3 0
3 years ago
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