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ExtremeBDS [4]
3 years ago
6

Everyone uses money, and it is important to understand what factors affect the cost of money. Consider the following scenario: A

friend comes to you and asks you to invest in his business instead of investing in Treasury bonds. You think he has a good business model, so you tell him you are willing to invest as long as the expected return on the investment is at least four times the return you would have received on the Treasury bonds. Determine which of these fundamental factors is affecting the cost of money in the scenario described:a.Inflation b.Risk c.Time preferences for consumption
Business
1 answer:
Rama09 [41]3 years ago
5 0

Answer:

The correct answer is letter "C": Time preferences for consumption.

Explanation:

American economists Irving Fisher (1867-1947) proposed the Time Preferences for Consumption theory that contrasts saving money to spending it today. According to the theory, people will weight the return of spending or saving money based on their expectations. It means, how much the goods an individual can purchase today are worth versus the return of the savings in the future.

Thus, in the case, <em>there is an evaluation of investing in Treasury Bonds versus investing today in a friend's business. The time preferences for consumption is applied when the individual compares the expected return of the Treasury bonds with what investing today could provide.</em>

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On December 31, Slugger Batting Cages Company decides to trade in one of its batting cages for another one that has a cost of $5
torisob [31]

Answer:

There is a loss of 18,000

Explanation:

In this question, we are asked to calculate the amount of boot in this transaction.

We proceed as follows;

We must identify that to buy one asset, we exchanged one asset with another

Mathematically;

loss or gain = asset given up - Discount received in exchange

From the question we identify the following;

value of asset given up = 225,000 - 195,000 = 30,000

Discount received in exchange = 12,000

Thus, loss or gain is

= 30,000 - 12,000

So, there's a loss of 18,000

4 0
3 years ago
Secondary data is often gathered primary data
AlexFokin [52]

Answer:

Is often gathered BEFORE primary data

Explanation:

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7 0
2 years ago
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Devin is a landscaper who needs to prepare different types of grass seed for his customers' yards. Bluegrass seed costs $2.00 pe
IgorLugansk [536]

Answer:

7 pounds

Explanation:

To solve this we need to use simultaneous algebraic equations.

Assume

x  = 1 pound of bluegrass seed

y = 1 pound of drought resistant seed

Our first equation considers the number of pounds

x + y = 25

y = 25 - x

For the combined bluegrass seeds and thought resistant seeds bought

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2x + 3y = 68

Substitute value of y in equation 2

2x + 3(25 - x) = 68

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So the amount of bluegrass seed is 7

We can also get the amount of drought resistant seed from equation

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3 0
3 years ago
Olde Shoppe has the following information at August​ 31: times Two deposits made on August 31 were not on the bank​ statement, t
Reika [66]

Answer:

The adjusted book balance at August​ 31 is $13,824

Explanation:

The computation of the book balance is shown below:

= Cash balance + EFT payment on a note receivable +  interest on the note - forgot to record check -  check printing service fee  - NSF check

= $11,667 + $2,830 + $150 - $643 - $80 - $100

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3 0
3 years ago
6. Assuming the partial billing was approved for payment and the expenditure and liability (contracts payable) was recorded for
jenyasd209 [6]

Answer:

Option A, Credit to Cash, $560,000

Explanation:

As per the data given in the question,

Expenditure and liability = $700,000

Retaining percentage = 20%

Assuming the partial billing was certified for expenses and payments and liability was approved for amount $70,000. Though, Oxford has a policy not to pay 100 percent, but to retain  20 percent as a retained percentage.  

So, $700,000 - $700,000 × 20%

= $700,000 - $140,000

= $560,000

Therefore, The entry to record the approved payment and retained percentage would include:  

Option A, Credit to Cash, $560,000

8 0
3 years ago
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