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Elden [556K]
3 years ago
12

A farmer has cash costs of S1.50/bu for his corn. The opportunity cost of his labor is S0.30/bu and the opportunity cost of his

land (which he owns) is $0.40/bu. If he sells his corn for $2.50/bu, then his economic profits are:_______ A) $2.50/bu B) S1.00/bu C) S0.30/bu D) S0.70/bu E) can't tell based on the information given
Business
1 answer:
Ghella [55]3 years ago
4 0

Answer:

C. $0.30/bu

Explanation:

Given that

Cash cost = $1.50/bu

Opportunity cost of labour = $0.30/bu

Opportunity cost of Land = $0.40/bu

Sales from corn = $2.50/bu

Recall that economic profits = Total income - Total expenses - opportunities cost

Therefore

Economic profits = 2.50 - 1.50 - (0.30 + 0.40)

= 2.50 - 1.50 - 0.70

= 0.30

Therefore, economic profits = $0.30/bu

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You are considering investing in a start up project at a cost of $100,000. You expect the project to return $500,000 to you in s
NemiM [27]

Answer:

b.The IRR is equal to 25.85%

Explanation:

Firstly we are given that i consider investing $100000 which will in this problem be our Cinitial which is the initial investment for the project.

Then now given the risk of this project, my cost of capital is 20% so then we will compare this to the IRR and see if i can accept the project or not if the cost of capital is greater than the IRR than its not good to invest on the project but if the cost of capital is less than the IRR then the this will be a good investment as the cost of capital also checks the opportunity cost.

The future payment cash flows which is $500000 so we will use the following formula:

NPV = (cash flow)/(1+IRR)^n     - initial investment

so we find the present value of the cash flow of the investment and subract the initial investment which will give us a zero cause the present value of the cash flow is equal to the initial investment therefore( n is the period of cash flows):

0= $500000/(1+IRR)^7    - $100000 transpose the initial investment and solve for IRR.

$100000(1+IRR)^7= $500000 then divide both sides by $100000

(1+IRR)^7 =  5          then find the 7nth root of both sides to eliminate the exponent of 7

1+ IRR = \sqrt[7]{5}

1+IRR = 1.258498951 then subtract 1 both sides to solve for IRR

IRR = 0.258498... then multiply by 100 as IRR is a percentage

IRR= 25.85 % rounded off to two decimal places which is the answer b

8 0
3 years ago
What role has venture capitalism played in the market place?
bekas [8.4K]

Answer:

The summary of the matter in question is mentioned throughout the subsection below.

Explanation:

  • Venture Capital seems to be an age-old term although in previous centuries this same industry has changed.
  • A venture capitalist plays a very important role throughout organizing early-stage investment, attracting top management abilities candidates, promising technological start-ups, and innovative product manufacturer's professional assistance as well as other support facilities.

6 0
3 years ago
Rafi, a director of Super Service Station Corporation, does not attend a board meeting for three years. During that time, Twyla,
Varvara68 [4.7K]

Answer:

a. liable for negligence or mismanagement.

Explanation:

Given that,  

The cost of the improper loans = $100,000

Since the director of the Super Service Station Corporation does not attend a board meeting for three years plus the president Twyla had done the improper loans that reflect the mismanagement as without knowing the credit history of the people how it could make the loans.  

Moreover, there is no guarantee of returning the money so he is totally liable for his negligence or mismanagement

8 0
3 years ago
Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. An
weqwewe [10]

Answer:

A. supply curve shifts to the left

Explanation:

An increase in the prices of inputs from $4 to $6 shows economic problems that include a reduction in capital stock, labor, and an increased unemployment rate. This can also give room for inflation.

This increase shows that due to shortage in labor supply, it now costs more to produce a product.

Due to all the above mentioned reasons, the supply curve of both long run and short run supply curves shifts left.

Cheers.

7 0
3 years ago
The bretton woods agreement incorporated all of these features except ________.
telo118 [61]
Hello <span>Wahsorad4380 </span>



Question: The bretton woods agreement incorporated all of these features except ________.<span>

Answer: floating exchange rates


Hope This Helps!
<u>-Chris</u></span>
8 0
3 years ago
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