Answer:
Explanation:
Sunk, or past, costs are monies already spent or money that is already contracted to be spent. A decision on whether or not a new endeavor is started will have no effect on this cash flow, so sunk costs cannot be relevant.
For example, money that has been spent on market research for a new product or planning a new factory is already spent and isn’t coming back to the company, irrespective of whether the product is approved for manufacture or the factory is built.
Committed costs are costs that would be incurred in the future but they cannot be avoided because the company has already committed to them through another decision which has been made.
In both water and paint the buyers are testing the lead in the 1891 Victorian coin.
Queen Victoria was born in 1819 and ruled United Kingdom from 1837 – 1901. As one of the most notable British Monarchs, Queen Victoria's reign resulted in a number of popular and collectible gold and silver coins.
The 1891 Victorian penny is considered worth more than Bitcoin. On a gram for gram basis, the price paid by the anonymous buyer made it around 100 times more valuable than gold.
Hence, in order to check the lead, the buyers want to get both the water and the paint tested.
To learn more about Victorians here:
brainly.com/question/3728652
#SPJ4
Answer:
A. The total market value of steel used to produce car and total market value of car itself are summed
Explanation:
Double Counting refers to multiple inclusion of Intermediate goods' value in value of Final Goods . Final Goods are goods used for self consumption , investment & Intermediate Goods are goods used for further processing , further resale .
Eg : Farmer sold wheat to miller for 100 . Miller sells flour to baker for 150 (miller value added = 150 - 100 = 50) .Baker sells bread to consumers for 200 (baker value added = 200 - 150 = 50) . But ,Value of Bread (200) already includes value of flour (150) , which further includes value of wheat (100) and value added at each stage 50 each.
If including value of both final good (Bread) and intermediate good (Wheat , flour) : Bread value would be 100+150+200 = 450 which is much overvalued above real value 200, including all intermediate goods value , because of Double Counting of IC goods value in Final Good
Similarly : Steel used as Intermediate good to produce Final Good Car , if included in Car Value - will lead to Double Counting
Given Information:
Current cost of money = r = 0.011% per day
Period = n = 365 days
Required Information:
Discount rate = ?
Answer:
Discount rate = 4.096%
Explanation:
The required annual discount rate to discount the annual fee is given by
Where r is the current cost of money and n is the period in days
Current cost of money = r = 0.011/100 = 0.00011
Therefore, 4.096% is the required annual discount rate to discount the annual fee of $27,500.
