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gladu [14]
3 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]3 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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Explanation: Business continuity planning refers to the procedure involved in creating a risk reduction and recovery scheme for a corporation from possible hazards.

The strategy helps to ensure the protection of management and resources and the ability to operate rapidly in the event of an emergency. The BCP is usually designed in ahead of time and includes insight from relevant parties and staff.

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If a company states in its advertisements that 10 percent of all profits go to planting trees in various parts of the​ world, th
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Answer:

C. GREEN MARKETING

Explanation:

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This type of marketing can also includes  'Corporate Social Responsibility' , investment in environmental upgradation as is the case in the question.

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3 0
3 years ago
Foster, Inc., purchased a truck by paying $5,000 and borrowing the remaining $30,000 required to complete the transaction. Ident
neonofarm [45]

Answer: c. Foster Inc.'s assets will decrease by a net amount of $30,000.

d. The Company's liabilities will increase by $30,000.

Explanation:

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Since the company borrowed $30,000, this will lead to an increase in the liability of the company by $30,000. Also, it will lead to a reduction in the net assets of the company by a net amount of $30,000

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Outline four merits of indirect taxes​
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Answer:

Explanation:

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3.Not Easily Evadeable: ...

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hope it helps!!

pls make me brainlest!

:)

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3 years ago
Every person I have ever met says their favorite pizza is pepperoni pizza. Therefore, I can assume that everyone I ever meet wil
oksano4ka [1.4K]

Answer:

Inductive reasoning

Explanation:

This type of reasoning is considering generalization that is formed and based on some previous experiences and with that previous experiences the observation that is made is forming an inductive reasoning.

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