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earnstyle [38]
3 years ago
15

If the poverty trap were made even more difficult to overcome because a working mother will have extra expenses like transportat

ion and child care that a nonworking mother will not face, then:______
a. She will have a powerful incentive to work more than one job.
b. The family better off than is she did not work at all
c. Her economic gains from working will be even smaller
d. Working now and in the future is even more attractive
Business
1 answer:
OleMash [197]3 years ago
7 0

Answer: A. She will have a powerful incentive to work more than one job.

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Answer:

Expected Cost = $60,000

Present Value of Expected Cost = $45,079

Explanation:

The chance that the bankruptcy will happen is 30% and the cost it will incur if it happens is $200,000. The expected cost is the probability of the event happening multiplied by the cost of the event happening.

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The present value of this cost assuming a discount rate of 10% is;

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$81,020

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The cost of the asset includes the cost of purchase less any given discount or tax returns and the addition of other cost incurred in making the asset available for use.

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The routine maintenance cost is not a part of the asset but an expense in p/l.

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