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barxatty [35]
4 years ago
10

A local restaurant owner is considering expanding into another rural area. The expansion project will be financed through a line

of credit with City Bank. The administrative costs of obtaining the line of credit are​ $500, and the interest payments are expected to be​ $1,000 per month. The new restaurant will occupy an existing building that can be rented for​ $2,500 per month. The incremental cash flows for the new restaurant include A. ​$500 administrative​ costs, $1,000 per month interest​ payments, $2,500 per month rent. B. ​$2,500 per month rent. C. ​$500 administrative​ costs, $2,500 per month rent. D. ​$1,000 per month interest​ payments, $2,500 per month rent.
Business
1 answer:
Vladimir79 [104]4 years ago
5 0

Answer:

B) ​$2,500 per month rent.

Explanation:

Incremental cash flows do not include interest payments on investment capital, since the cash flows should be equally generated if you invest your own money, another partner invests his money or someone else lends it to you. The same logic applies to the administrative costs of the credit line.

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An indifference curve illustrates ... a) how consumers are indifferent about the location of their own consumption levels relati
Leya [2.2K]

Answer:

Option c) how a consumer might trade off different levels of consumption of each of two goods, while staying at the same utility level.

Explanation:

This is the very definition of an indifference curve. The points in an indifference curve are the combinations of the quantities (level of consumption) of two different goods which will produce the very same utility to the consumer. The consumer will perceive any of those combinations as having the same utility for him.  

For example, a usual graph of various indifference curves will look like the graph attached.

In this graph the combination of 2 pairs of shoes and 15 pants will be perceived as having the same utility as the combination of 5 pairs of shoes and 4 pants. Both are combinations in the same indifference curve, the green one, and the utility of any combination lying in that green curve will be rated the same: u = 1.

8 0
3 years ago
At the end of 2017, companies from one country collectively owned $22 billion in assets in its neighboring country. The $2 billi
Nastasia [14]

Answer:

A. Stock

Explanation:

The Stock of Foreign Direct Investment (FDI) measure the total level of direct investment at a given point in time, usually the end of a quarter or of a year.

The outward FDI stock is the value of the resident investors' equity in and net loans to enterprises in foreign economies.

6 0
3 years ago
Delivery of stock index futures a. is never made. b. requires delivery of 1 share of each stock in the index. c. is made by a ca
jolli1 [7]

Answer: c. is made by a cash settlement based on the index value

Explanation:

Stock index futures are settled by cash sort of like index options.

This means that there is no delivery of the actual underlying asset at the end of the contract.

The cash / profit is determined by the starting and ending prices of the futures contract.

6 0
3 years ago
What problem makes public goods necessary?
NARA [144]
There are several problems that make public goods necessary, but the primary one is that without access to certain public goods and services like parks and schools, poor people would have practically no chance at advancement. 
3 0
3 years ago
The cutting edge sells ice skates. total sales are $845,000, total variable expenses are $245,050 and total fixed expenses are $
natita [175]

If the cutting edge sells ice skates. total sales are $845,000, total variable expenses are $245,050 and total fixed expenses are $302,000. the variable expense ratio is: 29%.

<h3>Variable expense ratio</h3>

Using this formula

Variable expense ratio=Total variable expense /Total sales

Let plug in the formula

Variable expense ratio=$245,050/ $845,000

Variable expense ratio=0.29×100

Variable expense ratio=29%

Therefore If the cutting edge sells ice skates. total sales are $845,000, total variable expenses are $245,050 and total fixed expenses are $302,000. the variable expense ratio is: 29%.

Learn more about variable expense ratio here:brainly.com/question/24161829

#SPJ1

3 0
2 years ago
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