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Roman55 [17]
3 years ago
9

What is the opportunity cost in this scenario​

Business
1 answer:
FrozenT [24]3 years ago
6 0

Answer: The correct answer is visiting Ouro Preto.

Explanation: Opportunity Cost is what a person misses out on when another option is chosen. In this case Mikael chose to pay the extra $200 for the transportation. In order to do this he had to give up $200 in sightseeing. The sightseeing experience of visiting Ouro Preto is the Opportunity Cost in this scenario.

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What techniques do you use to focus your time and resources?
zubka84 [21]
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8 0
3 years ago
The current rates are: (1) Spot exchange rate: $2.00/£; (2) 90-day USD denominated bonds: 2% (8% annual); (3) 90-day UK pound de
Sedaia [141]

<u>Solution and Explanation:</u>

Assume US Investor need 1000 Pound after 90 days:

Option 1: Forward Option:1000 pound = 1000 multiply with 1.98 = $1980

<u> Option 2: Invest in UK: </u>

Need 1000 pound after 90 days

so, Invest in UK pound today 1000 divide by 1.04= 961.5385

to get 961.5385 today he need to pay = 961.5385 multiply with  $2 ( Current Spot Rate)

= $1923.077

<u> Option 3 : Invest in US: </u>

Need 1000 Pound after 90 days

so forward Exchange rate 1.98 he need 1000 pound* 1.98 = 1980 $ after 90 days

so invest today 1980/1.02 = $1941.176

<u> Advise: Option 2 is best , Invest in UK Bonds </u>

7 0
3 years ago
Which of the following statements is most consistent with efficient inventory management? The firm has a:
aalyn [17]

Answer:

The correct answer is letter "A": low incidence of production schedule disruptions.

Explanation:

Efficient inventory management is the approach selected to handle the firm's cash flow efficiently. The approach implies reducing wasting time, diminishing the time the items are stored in the warehouse, and predicting future demand whenever possible. It also involves having little to no disruption in the production schedule.

4 0
3 years ago
A company that utilizes carbon fiber 3-D printing wants to have money available two years from now to add new equipment. The com
Alenkinab [10]

Answer:

Total amount available in two years is $1,354,125.

Explanation:

The total amount available in two years can be calculated as follows:

Total amount in the deposit now = Current deposit + Amount planned to be deposited = $650,000 + $200,000 = $850,000

Future value of the total amount the deposit now = Total amount in the deposit now * (1 + Annual interest rate)^Number of years the deposit used = $850,000 + (1 + 15%)^2 = $1,124,125

Future value of next year's deposit = Next year's deposit * (1 + Annual interest rate)^Number of years the deposit used = $200,000 * (1 + 15%)^1 = $230,000

Total amount available in two years = Future value of the total amount the deposit now + Future value of next year's deposit = $1,124,125 + $230,000 = $1,354,125

5 0
3 years ago
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $70,000 and $3,600, r
tatyana61 [14]

Answer:

Uncollectible account expense  $8,600

Explanation:

The computation of the amount as the Uncollectible Accounts Expense on its Year 2 income statement is given below:

Allowance account - Beg year 2    $3,600 Credit

Written off account   $6,600    Debited by

 Unadjusted balance in Allowance account  $3000  Debit

Adjusted balance required in Allowance account  $5,600  Credit

Uncollectible account expense  $8,600

6 0
3 years ago
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