If the going rate of interest were 10 percent and the expected profit rate were 18 percent, then the opportunity cost of a firm carrying out a $100,000 project for one year with its own funds would be$10,000.
SO
$100,000/10 =$10,000
Opportunity cost is the advantage that was lost because a particular option was not selected.
It is necessary to weigh the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs.
Opportunity costs have a value that can help people and businesses make more lucrative decisions.
Opportunity cost is a wholly internal expense that is only utilized for strategic consideration; it is not included in accounting profit and is not reported externally.
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The annuity that represents the largest possible monthly payment to an individual annuitant is a Straight life annuity.
A straight life annuity is a type of retirement income product where the benefit is paid up until death but waives any kind of additional beneficiary payments.
Answer : all of the above
I think this is the answer.
Answer:
Net present value of the project is closest to $15,542.00
Explanation:
The net present value of the project is the present value of cash inflows minus the initial investment.
The present value of the cash inflows is the yearly cash inflow of $133,000 multiplied by the annuity of 13% for 4 years i.e 2.974
Present value of inflows=2.974*$133,000=$ 395,542.00
initial investment is $380,000
Net present value=$ 395,542.00-$380,000.00=$15,542.00
Answer:
D
Explanation:
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