Answer:
Jane's total cost is $60,000.
Explanation:
This is because of the phenomenon called Opportunity Cost.
Simply put, opportunity cost is the cost of the next best alternative use of resources when a choice is made at the detriment of another.
We can also define it by saying, Opportunity Cost is the forgone alternative.
So we know she spent $50,000 to start her business, but would have made 10% of $100,000 which is $10,000 which is the opportunity cost, she has incurred a total cost of $60,000.
Answer:
The Annual payment to be made is $445,327
Explanation:
The computation of the annual payment is shown below;
As we know that
The Present value of assets = Annual payment to be made × Present value annuity factor (i%,n)
$2,400,000 = Annual payment to be made × Present value annuity factor (7%,7)
$2,400,000 = Annual payment to be made × 5.3893
So,
The Annual payment to be made is $445,327
The answer is 9.35%.
The required rate of return (RRR) is the minimal return an investor would accept for owning a company's shares in exchange for a certain amount of risk. In corporate finance, the RRR is used to assess the profitability of proposed investment projects.
The RRR is a subjective minimal rate of return; this implies that a retiree will have a lower risk tolerance and hence accept a lesser return than a fresh college graduate with a larger stomach for risk.
Required return=(D1/Current price)+Growth rate
=(1.87/37)+0.043
=0.0505405405+0.043
=9.35% (Approx)
Hence, the required rate of return is 9.35%.
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Answer:
D
Explanation:
Delivery costs are mixed and utilities are variable.
Variable costs are cost that changes in direct proportion to the level of production. This means that when the variable cost increases then more units are produced and decreases when less units are produced.
Mixed costs also known as semi-variable costs have properties of both fixed and variable costs due to the presence of both variable and fixed components in them.
In this case utilities is a variable cost, it increases as the units increase, while delivery cost is a mixed cost, it has the element of both fixed and variable.
A fixed cost does not change with the level of activity it remains the same.