Answer:
Explicit cost = $2,000,000
Explanation:
Explicit costs
<u><em>Explicit costs</em></u><em> are out-of-pocket expenditures incurred for the purpose of a project or business, They represent cash outflow expenses which actually involve the payment for cash. For example, the $2 million cost of building the warehouse and office. </em>
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Implicit costs
<em>On the other hand</em><u><em>, implicit costs </em></u><em>are the value of the benefit sacrificed in favor of a decision. They are known as opportunity cost. For example, the $5000 per year which Munif would forgo if he expands the business. </em>
A net worth statement, financial goals, and a budget are all part of a financial plan.
<u>Solution and Explanation:</u>
As per capital gains, painting is treated as capital asset. Hence, theft of painting is a dead loss means no tax treatment.
A capital resource might be said to incorporate such things as property, regardless of whether mobile or unflinching, fixed or flowing, or substantial or elusive. Different instances of capital resources may incorporate structures, hardware, PC gear, vehicles. In straightforward terms everything that you claim or use for individual or speculation purposes can be named as a capital resource.
A non capital resource incorporates business property. The things which may go under non capital resource incorporates stock, stock in exchange, and some other sort of property that you hold exclusively with the end goal of offer to clients in your business or exchange. In basic terms a non capital resource is property that is certainly not a capital resource.
Answer: See explanation
Explanation:
For the first airplane:
Payback period will be:
= Cost of first airplane ÷ Annual cash inflow
= 23,680,000 / 6,400,000
= 3.7 years
For the second airplane:
Payback period will be:
= Cost of first airplane ÷ Annual cash inflow
= 27,880,000 / 8,200,000
= 3.4 years
Since the decision is based on the payback approach, Zachary Airline should select the second option since it has a lesser payback period.
