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3 years ago

How can trade-offs and opportunity costs be measured?

Business

1 answer:

vovikov84 [41]3 years ago

4 0

Answer:

see below

Explanation:

The terms opportunity cost and trade-off are, in most cases, used interchangeably. Opportunity cost occurs due to scarcity of resources. Individuals have to make choices among the options available to them. The fortified option is the trade-off or the opportunity cost.

Opportunity cost is measured by obtaining the value of the next best alternative. In other words, the cost of the most valuable sacrificed option is the opportunity cost. For example, if a student has $50, he can purchase a meal valued at $45, watch a movie valued at $40 or buy a book for $ 47. assuming he opts to buy the book, the meal becomes the opportunity cost because it represents the next best alternative.

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Answer:

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3 years ago

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You were asked to estimate the cost of capital for XYZ Inc. The firm is expected to have a target capital structure of 30% debt,

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Answer:

8.30%

Explanation:

The weighted average cost of capital of the company is computed using the WACC formula below:

WACC=(We*Ke)+(Wp*Kp)+(Wd*kd)

We=weight of common equity=50%

Ke=cost of retained earnings which is a proxy for the cost of equity=11.50%

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Kp=cost of preferred stock=6.00%

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3 years ago

Sumiko files her tax return married filing separately. She has not lived with her husband for over two years. Beginning in Janua

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Answer:

b. 7,200

Explanation:

600 x 12 =7200

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3 years ago

Harry wants to save money in a bank account. He decides to open a _______ account with a five-year maturity date because it offe

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Money Market, a higher interest rate

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The ABC Company is planning a new product line and will build a new plant to manufacture the parts for a new product line. The p

NikAS [45]

Answer:

a. Number of production operations = 120,000,000 per year.

b. Number of Workers = 1,000 workers.

C. Size = 250,000 ft²

Explanation:

Number of production operations is calculated as;

50 models * 1000 units * 400 components * 6 steps

Number of production operations = 120,000,000 per year.

Number of workers is calculated as;

Total operation time ÷ factory operating hours per year;

Factory Operating Hours = 2000.

Calculating total operation time;

= 120,000,000 * 1hr/60min

= 2,000,000 hr/yr

So. Number of workers = 2,000,000 ÷ 2,000

Number of Workers = 1,000 workers.

c. Size of floorspace

Size = Number of workstations * floorspace

Number of workstations = number of workers = 1000

Floorspace = 250ft²

Size = 1000 * 250

Size = 250,000 ft²

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3 years ago