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postnew [5]
3 years ago
14

One method for studying opportunity cost is to think in terms of

Business
2 answers:
Vesnalui [34]3 years ago
7 0

Answer:

A. Risk and Benefit

Explanation:

QveST [7]3 years ago
4 0
The answer is "cause and effect" and "risk and benefit" terms to study the opportunity cost. The opportunity cost is a term used for describing the cost that might be occurred from choosing several options. Each of the options has its "cause and effect" and "risk and benefit" to consider in order to determine the opportunity cost.
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Today is January 1, 2009. The state of Iowa has offered your firm a subsidized loan. It will be in the amount of $10,000,000 at
erastova [34]

Complete question:

Today is January 1, 2009. The state of Iowa has offered your firm a subsidized loan. It will be in the amount of $10,000,000 at an interest rate of 5 percent and have ANNUAL (amortizing) payments over 3 years. The first payment is due today and your taxes are due January 1 of each year on the previous year's income. The yield to maturity on your firm's existing debt is 8 percent. What is the APV of this subsidized loan? If you rounded in your intermediate steps, the answer may be slightly different from what you got. Choose the closest.

A. -$3,497,224.43 B. $417,201.05 C.$840,797 D. None of the above

Answer:

$840,797  is the APV of this subsidized loan

Solution:

Input the loan in a financial equation first and resolve the payment:

PV=10,000,000

N= 3I = 5%

PMT = 3,672,085

Now, find the APV of the loan:

CF0 = $10,000,000

CF1= -$3,502,085

     = -$3,172,085 - .66 * $500,000CF2

     = -$3,556,011CF3

     = -$3,612,632I

     = 8%

APV = $840,797

5 0
4 years ago
The primary purpose of a career assessment test is to _____.
amm1812
<span>Suggest careers for which the person might be well suited.</span>
8 0
3 years ago
Read 2 more answers
An oil company purchased 10,000 acres of land on January 1, 2015, for $5,000,000, on which it developed an underground oil site.
dexar [7]

Answer:

the depletion would be recorded is $1,575,000

Explanation:

The computation of the depletion would be recorded is shown below;

Cost of land $5,000,000      

Investment on land $1,100,0000      

Less: Residual value -$250,000      

Depreciable value $15,750,000  

Now the depletion should be    

= ($15,750,000 ÷ 500,000) × 50,000  

= $1,575,000

Hence, the depletion would be recorded is $1,575,000

8 0
4 years ago
What is the value today of a money machine that will pay $2,655.00 every six months for 27.00 years? Assume the first payment is
MAVERICK [17]

Answer:

Present value is $74,116.62

Explanation:

Giving the following information:

The machine pays= $2,655.00 every six months

n= 27 years= 54 semesters

Interest rate= 0.13/2= 0.065

First, we need to calculate the final value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual pay

FV= {2,655*[(1.065^54)-1]}/0.065= $1,183,854.61

Now, we can calculate the present value using the following formula:

PV= FV/(1+i)^n

PV= 1,183,854.61/(1.065)^44= $74,116.62

3 0
4 years ago
A decrease in supply will cause the smallest increase in price when
andre [41]

Answer:

Both supply and demand are elastic.

Explanation:

Demand or supply elasticity is defined as elasticity or responsiveness with more than one numerical value, which indicates their high response to the change in price.  

Elastic demand: It is the percentage change in quantity demanded due to the change in price in absolute value of the product.

The elasticity of supply: It is defined as the response of the quantity of a good supplied to a change in the price of the good. Likely to be positive in output.

FORMULA; Elasticity of supply= (\%\ change\ in\ quantity\ supplied) / (\%\ change\ in\ price)

Due to the decrease in the supply of goods in the market, it leads to the scarcity of goods, therefore there is an increase in the price of goods.

6 0
3 years ago
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