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crimeas [40]
3 years ago
10

You have just completed a $ 24 comma 000 feasibility study for a new coffee shop in some retail space you own. You bought the sp

ace two years ago for $ 105 comma 000​, and if you sold it​ today, you would net $ 117 comma 000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $ 25 comma 000 plus an initial investment of $ 5 comma 000 in inventory. What is the correct initial cash flow for your analysis of the coffee shop​ opportunity?
Business
1 answer:
Anna35 [415]3 years ago
3 0

Answer:

$147,000

Explanation:

Data given

Capital expenditure = $25,000

Opportunity cost = $117,000

Increase in net working capital = $5,000

The computation of initial cash flow is shown below:-

Free cash flow = Capital expenditure + Opportunity cost + Increase in net working capital

= $25,000 + $117,000 + $5,000

= $147,000

Therefore for computing the free cash flow we simply applied the above formula.

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What is the most likely effect of the development of XBOX with DVD capabilities on the DVD player industry? a. ​decreased price
Shkiper50 [21]

Answer:

The correct answer is letter "B": ​Increased price elasticity of demand for the DVD player industry because XBOX are substitutes.

Explanation:

Price elasticity of demand reflects the changes in quantity demanded for a good or service as a result of changes in price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is equal to or greater than one (1) the demand is elastic.<em> It means a minimum change in price has a major impact on the quantity demanded volume. </em>

Thus, <em>if XBOX implements DVD features, DVD players will face an increase in their price elasticity of demand because changing DVD players' prices could change their quantity demanded by far because consumers will prefer purchasing an XBOX which is a substitute.</em>

7 0
3 years ago
A Company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Sec
gogolik [260]

Answer: $65

Explanation: Under the FIFO method, that is, first in first out method inventory is recorded on the assumption that the goods that were purchased first will also be sold first and the remaining inventory will have the latest purchased units.

So, in the given question the two units sold would be costing $80 and $95

Hence,

Gross profit = $240 - ($80 + $95)

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3 0
2 years ago
Donna entered into an oral contract with Ava to purchase a house from Ava, with $500 per month payments for the next 10 years. D
Crank

Answer:

Oral contracts regarding the sale of real property are enforceable under the Statute of Frauds.

Explanation:

Another thing that supports Donna's case is that she spent money, time and possibly others resources remodeling the house because she relied on the validity of the oral contract.

4 0
3 years ago
1. How are people rational when they make choices?
baherus [9]
Rational choice theory states that individuals rely on rational calculations to achieve outcomes that are in line with their personal objectives. These decisions provide people with the greatest benefit or satisfaction — given the choices available — and are also in their highest self-interest.
3 0
3 years ago
Why do markets exist?
FinnZ [79.3K]

Answer:

The correct answer is *to provide a place for people to trade goods and services

Explanation:

trading can be simply described as the act of exchanging values between parties.

a market is a place where the sellers and buyers meet and trade, in which the buyers buy what they need and want from the sellers at a price both of them can agree upon.

8 0
3 years ago
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