Answer: c. $81,202
Explanation:
The inflow will be annual and constant which makes it an annuity. Given the discount rate of 12% and a useful life of 8 years, the present value interest discount factor based on the table is = 4.968.
Option 1 present value
= 48,410 * 4.968
= $240,500.88
Option 2 present value
= 50,427 * 4.968
= $250,521.34
Option 3 present value
= 81,202 * 4.968
= $403,412
Option 3 is the closest option with the difference being down to rounding errors. The annual inflow would have to be $81,202 to make the investment in the equipment financially attractive.
Inadequate competition can lead to market failure. The correct answer is B, market failure.
Answer:
It will purchase at the local store at an economic cost of $123
Explanation:
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:
place travel-time Price Cost to travel Economic Cost
local store 30 $ 102.00 $ 21.00 <u> $ 123.00 </u>
across town 60 $ 85.00 $ 42.00 $ 127.00
neighboring city 120 $ 76.00 $ 84.00 $ 160.00
*travel-time we multiple the time it took each eway by 2
**The cost to travle will be Juanitas wages per hour ($42) times the travel-time/ 60
That's because the wages are express in hours and the travel time in minutes so we convert into hours
Then, the economic cost is the sum of the value of the skirt and the lost wages.
<em>Juanita, as a rational consumer will chose to purchase at the lower cost.</em>
Answer: LG needs to be aware of the implications around leasing her property or to selling off out rightly.
whether A sale or lease happens between her and the company /individual who wants to buy over or make use of the property. So she cannot ignore the legal formalities and report the transaction as a lease.
Explanation:
