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olya-2409 [2.1K]
3 years ago
6

Describe three different financial decisions and their opportunity costs.

Business
2 answers:
KatRina [158]3 years ago
8 0

Answer:

Going to college has an opportunity cost of not working or working less. Buying a car has an opportunity cost of not being able to save as much. Buying a house could have an opportunity cost of not being able to travel. Opportunity cost is the choice you give up when selecting something else.

Explanation:

NeX [460]3 years ago
5 0

Answer:(Answers may vary.)

At the beginning of the year, I received a bonus at work. I decided to invest the money. I had two options: invest the money in high-yielding bonds, or invest the money in US Treasuries. I decided to invest my money in High-yielding bonds. High-yielding bonds had a return of 10 percent, whereas the US Treasuries had a return of 5 percent. So, my opportunity cost was 5 percent. High-yielding bonds carry more risk, though, and I might have lost 2 percent instead of earning 10 percent. Treasuries have virtually no risk, but the expected return is a bit lower.

My cousin is a fashion designer. She currently works for a retail management firm and earns $59,400 per year. A famous company in the fashion industry offered her a job in Paris. They offered her $45,500 per year. She decided to take the job in Paris, because she will learn many new things and will be in the fashion hub of the world. The salary offered is lower than what she currently earns. However, she believes that the opportunity cost of not taking the job would involve losing future lucrative opportunities that are only available to those who work in famous fashion companies. The opportunity cost of taking the job in Paris is the increased salary she would have earned at her old job. Moreover, she has to find her own accommodations and make new friends in Paris. In the United States, she has her own apartment and many friends and relatives. Therefore, another opportunity cost of moving to Paris involves losing an apartment and moving away from many friends and relatives.

James is working for a well-known firm and earns a decent salary. He pays his rent and other expenses from his salary, and saves the remaining amount. However, he now wants to pursue a master’s degree. For this, he will have to quit his job to attend classes full-time for one year. So, he left his old job, where he had earned the highest amount available for someone with his education and experience. However, he believes that within a year of being hired in his new career, he will earn a pay raise of 5 percent. In five years, he would earn a promotion and another pay raise, this time of 12 percent. The opportunity cost is the loss of one year’s income for James. However, the opportunity cost of staying in his job includes the future pay raises plus the satisfaction of obtaining a job he loves.

Explanation: Plato answer

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<span>speaker interest, awareness of the speaking situation, and audience interest and needs.</span>
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Mike Samson is a college football coach making a base salary of $651,600 a year ($54,300 per month). Employers are required to w
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Answer:

$7960.80; $9948.20 ; $17,409

Explanation:

Given the following :

Coach base salary = $651,600 ($54,300/month)

Social security tax = 6.2% upto maximum base amount

Medicare tax = 1.45% with no maximum

FICA base amount = $128,400

Coach Samson Social security and Medicare tax:

Social Security tax amount = 6.2% of $128,400

= 0.062 * $128,400 = $7,960.80

Medicare tax amount :

1.45% of $651,600

(1.45 / 100) * $651,600

0.0145 * $651,600

= $9948.20

Additional amount towards FICA taxes:

$7,960.80 + $9,948.20 = $17,409

4 0
3 years ago
An investor is in the 28 percent federal tax bracket and pays a 9 percent state tax rate and 4 percent in local income taxes. Fo
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Answer:

Corporate bond pay = 10.169%

Explanation:

Given:

Federal tax = 28%

State tax = 9%

Local income tax = 4%

Municipal bond pay = 6% = 0.06

Corporate bond pay = ?

Computation of Corporate bond pay :

Total taxes rate = 28% + 9% + 4%

Total taxes rate = 41%  = 0.41

Corporate bond pay = Municipal bond pay / (1-total tax rate)

Corporate bond pay = 0.06 / (1-0.41)

Corporate bond pay = 0.06 / (.59)

Corporate bond pay = 0.10169

Corporate bond pay = 10.169%

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3 years ago
When a company employs a varied workforce of both men and women, people of many generations, and people from ethnically and raci
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<u>Answer:</u> When a company employs a varied workforce of both men and women, people of many generations, and people from ethnically and racially different backgrounds, it is called workplace diversity.

<u>Explanation:</u>

Workplace diversity means when the organisation recruits employees from different backgrounds such as age, gender, ethnicity, religion, caste etc. By hiring people from different backgrounds the company has the benefits of hiring a pool of talented and skilled workers.

Creativity increases in the organisation for solving problems and different types of ideas can be brainstormed. The organisation can also understand the global market. Problems are solved quickly and it gives competitive advantage for the company in the market.

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3 years ago
Read 2 more answers
Which one of the following is an example of a nondiversifiable risk?
SSSSS [86.1K]

Answer:

A well-respected chairman of the Federal Reserve Bank suddenly resigns

Explanation:

A non-diversifiable or systematic risk, is a risk which is common to a whole market or class of investments and not just limited to just a particular company or investment.

Non-systematic risk is a risk common to just an investment or a company.

If the chairman of the Federal Reserve Bank suddenly resigns, it would affect a wide range of investments in the market and not just a company, which is an example of a non-diversifiable risk.

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