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4 years ago

11

What would happen to the buying power of your investment after one year if your rate of return was 8% and the rate of inflation

was 3%?

1 answer:

Anna71 [15]4 years ago

4 0

Dude why did you put this question like 5 times??

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Russ Wyant owned Humble Ranch in Perkins County, South Dakota. Edward Humble, whose parents had previously owned the ranch, was

Leona [35]

Answer:

Cosnider the following text.

Explanation:

In accordance with the United Stated Contract Law, peformance must form an integral part of the contract and any of it's clauses, along with consideration for the same.

As seen in the case above, specific provisions in the contract provide for the possibility of the seller becoming the buyer's lender by matching the terms of the proposed financing. However, it must be understood that a decision taken about the same by either one party is not binding on the other, and comes into effect only if it is mutually agreed upon under the same terms.

In the case above, Russ' uncle, Edward has exercised his two year option to buy the land from Russ, which if exercised, gave the parties 30 days to conclude the sale. However, as seen in the question, Russ's uncle, Edward was unresponsive to Russ' proposed purchase plan, indicating that he was aware of the terms of the contract and Russ' proposal, yet chose not to act on it. However, owing to the time clause in the contract, failure to respond an come to an agreement by either of the parties within the specified time, would render it void. Furthermore, Edward did not advise Russ on the financing terms pertaining to the contract before it's expiry, indicating that he had no interest in performing the contract.

Therefore, it should be understoof that Edward is not entitled to specific performance as a remedy in this case, as it is his fault and not Russ' fault for the non-performance of his part of the contract. He does not have any remedy at all, unless he is able to prove beyond reasonable doubt that Russ had not made efforts to communicate with him. Russ on the other hand, can sue Edward according to the terms of the contract and seek damages accordingly.

6 0

3 years ago

bogdanovich [222]

The cost of buying and leasing is: A. buy: 14720; lease: 14996.

<h3>Cost of buying and leasing</h3>

1. Cost of Buying:

Total loan payment= 385× 48 months

Total loan payment= $18,480

Cost of buying = Down Payment + Loan payment + ( Opportunity cost ×Down payment× X term in years ) - Ending loan estimated value

Cost of buying= 2,000 +$18,480 + (2000 × 0. 03× 4 years ) - 6,000

Cost of buying= 2,000 + $18,480+240-6,000

Cost of buying= 14,720

2. Leasing:

Total Lease payment=295× 48 months

Total lease payment= $14,160

Leasing= Total lease payment + End of lease charges + ( Security deposit × Opportunity cost× X term in years))

Leasing= $14,160+ 800 + (300 ×0.03×4)

Leasing= $14,160+ 800 +36

Leasing=14996

Therefore the cost of buying and leasing is: A. buy: 14720; lease: 14996.

Learn more about Cost of Buying and leasing here: brainly.com/question/15694660

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3 0

2 years ago

when machines are programmed to do multiple tasks in order to produce a variety of products, a firm is said to be employing?

leonid [27]

Answer:

- flexible

- manufacturing

Explanation:

7 0

2 years ago

Journalize the following merchandise transactions, using the net method under a perpetual inventory system.

Olenka [21]

Answer:

Part a

Debit : Accounts Receivable $18,000

Debit : Cost of Sales $10,800

Credit : Sales Revenue $18,000

Credit : Inventory $10,800

Part b

Debit : Cash $16,200

Debit : Discount allowed $1,800

Credit : Accounts Receivable $18,000

Part c

Debit : Accounts Receivable $600

Credit : Cash $600

Explanation:

The perpetual method calculates the cost of sales for each transaction made.

See the journals prepared as above

6 0

3 years ago

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variabl

o-na [289]

Answer:

Cost Advantage of different locations:

b. $20,000

Phoenix certainly had a cost advantage over Atlanta and based on this factor, it should be chosen for the new plant instead of any other city.

Explanation:

a) Total Costs of different locations:

Atlanta Phoenix

Fixed Cost $80,000 $140,000

Variable cost 400,000 320,000

Total Costs $480,000 $460,000

b) Variable costs

Atlanta Phoenix

Annual Demand 20,000 20,000

Variable cost/unit $20 $16

Total variable cost $400,000 $320,000

c) Cost Advantage is the competitive edge which location (or company) can have over another through reduced production or marketing costs or both so that it can offer cheaper prices or use excess profits to bolster promotion or distribution. In this case, the comparison is on the total cost, which is made of variable and fixed costs.

4 0

3 years ago