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gladu [14]
4 years ago
5

Joe decided to quit his computer-programming job (where he was earning $48,000 per year) to start his own software business. For

his office, Joe will use a two-story building that he bought 7 years ago for $250,000. The building is located in Hyde Park (South side of Chicago) in an area where a lot of recent construction has taken place, so the market price for the land has increased. You are given the following information about the costs of his firm:
Joe will pay himself a wage of: $18,000 per year
Maintenance and insurance $30,240 per year
Revenue $96,000 per year
Land’s salvage (resale) value $395,000
Risk-free interest rate 4.75% annually

Assume for simplicity that all taxes are equal to zero. Calculate the economic annual profits of this firm:_______

a. 47,760
b. −1,002.5
c. 47,741.2
d. 14,843.3
e. None of the above.
Business
1 answer:
Mrrafil [7]4 years ago
7 0

Answer:

b. −1,002.5

Explanation:

economic profit = accounting profit - opportunity costs

  • accounting profit = revenue - maintenance and insurance = $96,000 - $30,240 = $65,760
  • opportunity costs = the lost salary as a computer programmer + money he could earn by selling the land lot and investing = $48,000 + ($395,000 x 4.75%) = $66,762.50

economic annual profit = $65,760 - $66,762.50 = -$1,002.50

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as we look into the future the traditional purchasing approach will be transformed into ____ . ___ will be the tool that drives
aksik [14]

As we look into the future the traditional purchasing approach will be transformed into E-sourcing.

<h3>What is  E-sourcing?</h3>
  • The typical seven-step sourcing procedure can be used with a number of e-Sourcing solutions.
  • The procedures are the same whether e-sourcing software is used or not.
  • The distinction is in how you carry out each action.
  • You should choose the tools as a category manager or sourcing specialist that are most compatible with your company's goals.
  • It takes considerable knowledge of every tool in the toolbox to know which tool to use when. E-sourcing tools are placed beneath the relevant steps in the sourcing process below.
  • Simply put, e-Sourcing is a group of digital tools that aid in streamlining, streamlining, and improving the strategic sourcing activities and procurement processes carried out by the procurement team of an organization.

Hence, As we look into the future the traditional purchasing approach will be transformed into E-sourcing.

learn more about e-sourcing click here:

brainly.com/question/24319317

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5 0
2 years ago
Which two key considerations should be made to make sure the performance of the report is not degraded due to large data volume?
fgiga [73]

B. A number of joins used in report query.

C. A number of records returned by report query.

Explanation:

A report on the results of something is a survey. These are generated annually by government bodies that have to prove that the money was spent correctly and accurately, funded by public money.

Such reports should include metrics of success that assess the organization's accomplishments and its services. The statistics that, for instance, show the number of arrests, number of convictions by category of crime and the increase in crime rates for a police department.

5 0
3 years ago
When calculating the Annual Percentage Rate, it is important to consider?
Anettt [7]

Answer:

APR, or annual percentage rate, is your interest rate stated as a yearly rate. An APR for a loan can include fees you may be charged, like origination fees. APR is important because it can give you a good idea of how much you'll pay to take out a loan.

Explanation:

4 0
2 years ago
Terrell and hi parents live in a home near San Francisco. Terrell has a Visa card, which he is using to pay for car insurance to
nexus9112 [7]

Answer:

Terrell is using credit, which is a US regulated monetary system.

Explanation:

When you use credit (I also study finance along with investing) your borrowing money and paying it back later. This is a system that banks and government agencies make lots of money from, and they make money long term, while Terrell gets to pay his insurance in the short term. (I would advise against putting more than 10% of your credit limit of your credit card. Yes I know about credit cards lml) *edit- Credit is a form of small loans unless its secured or prepaid*

8 0
3 years ago
"A" represents the new quantity demanded, while "B"
Flura [38]

Answer:

1) Excess supply

2) fall

Explanation:

8 0
3 years ago
Read 2 more answers
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