Answer:
It is not economically rational for Daniel to enroll in the course
Explanation:
Increase in income = $23,000 - $18,000 = $5,000
i = 10% = 0.1
NPV = -(18,000 + 1,000) + 5,000/(1.1)^1 + 5,000/(1.1)^2 + 5,000/(1.1)^3
NPV = -17,000 + (4545.45 + 4132.22 + 3756.74)
NPV = -17,000 + 12,434.41
NPV = -4,565.59
Conclusion: Since NPV is Negative. Therefore, it is not economically rational. So the answer is NO.
Answer: The input choice will be relatively similar when prices and the marginal product of both capital and labor are equal.
Explanation:
For a cost minimizing output, it is required for a firm to employ resoruces where the MPl/Pl = MPk/Ok
Note that:
MPl = marginal product of labor
Pl = labor price
MPk = marginal product of capital
Pk = capital price
A firm that has cheap capital resources will employ more capital likewise the company that has cheap labor resources will employ more of labor.
The input choice will be relatively similar when prices and the marginal product of both capital and labor are equal.
Answer:
The correct answer is D.
Explanation:
Giving the following information:
The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 1800 units, the actual direct labor cost was $48000 for 3000 direct labor hours worked.
We need to calculate the total direct labor variance, using two formulas:
Direct labor efficiency variance= (SQ - AQ)*standard rate
Direct labor efficiency variance= (1,800*2 - 3,000)*15= $9,000 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (15 - 48,000/3,000)*3,000= $3,000 unfavorable
Total direct labor variance= 9,000 - 3,000= $6,000 favorable
The pros and cons of the Adjustable-Rate Mortgages are consistent payments and lower interest rates possible.
<h3>What is Mortgage?</h3>
Mortgage refers to the agreement between the lender and the buyer which involves the exchange of the money.
When person and a lender enter into a mortgage, the lender is granted the power to seize your property if person are unable to pay back the loan amount plus interest. Mortgage loans are used to either purchase a home or borrow against an existing home's worth.
Adjustable-Rate Mortgages is the loan which is granted for the homes which depends on the market as it does not has the fixed rate of interest.
The ARS mortgage type offers comfortable consistent payments, and over time, reduced interest rates may be feasible. However, there is a chance that interest will grow, which could be a drawback.
Learn more about Adjustable-Rate Mortgages here:
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In an acquisition, the firm being purchased is the target firm, and the firm which is purchasing the other firm is the acquiring firm.