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34kurt
3 years ago
11

Suppose that you open your own business and earn an accounting profit of​ $35,000 per year. When you started your​ business, you

left a job that paid you a​ $30,000 salary annually.​ Also, suppose that you invested​ $70,000 of your own funds to start up your business.
If the normal rate of return on capital is 10​ percent, your economic profit is


A. minus​$5,000.

B. minus​$2,000.

C. ​$5,000.

D. ​$2,000.
Business
1 answer:
Aleonysh [2.5K]3 years ago
7 0

Answer:

B. minus​$2,000.

Explanation:

The computation of the economic profit is shown below:

As we know that

Economic profit = Total revenue - Explicit costs - Implicit costs

= $35,000 - $30,000 - $7,000

= -$2,000

The implicit cost is come from

= $70,000 ×10%

= $7,000

We simply applied the above formula so that the economic profit could come

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The U.S. Treasury offers to sell you a bond for $715.00. No payments will be made until the bond matures 15 years from now, at w
nalin [4]

Answer:

interest rate is 2.25 %

Explanation:

given data

sell bond = $715

bond matures =  15 years

redeem =  $1,000

solution

we apply here formula that is

amount = principal × (1+r)^{t}    ................1

here put value and we get

1000 = 715  × (1+r)^{15}

(1+r)^{15} = \frac{1000}{715}

solve it we get

r = 0.022617

so rate is 2.25 %

7 0
3 years ago
You are offered a chance to buy an asset for $7,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000
Amanda [17]

Answer:

6.14%

Explanation:

The rate of return for the date given in the question for the asset shall be determined through calculating Internal rate of return on this asset, which shall be calculated as  follows:

Year          Cash flow               Present [email protected]%     Present [email protected]%

0               ($7,250)                  ($7,250)                      ($7,250)

1                 $750                       $714.29                      $681.82

2                $1,000                    $907.03                     $826.45

3                $850                       $734.26                     $638.62

4                 $6,250                    $5,141.89                   $4,268.83

                                                   $247.7                       ($834.28)

IRR=A%+[a/(a-b)*(B%-A%)]

A%=5%, a=$247.7 B%=10%  b=(834.28)

IRR=5%+[247.7/(247.7+834.28)*(10%-5%)]

IRR=6.14%

4 0
3 years ago
6. A listing broker should:
irina [24]

A listing broker should c. suggest a listing price based on comparable market data.

What does the term "listing broker" mean?

Listing brokers and listing agents are normally paid only if the sale is successful. A listing broker, often known as a seller's agent, is in charge of representing the interests of those wishing to sell a property. Historically, a commission for selling a house has typically been in the range of 6% of the selling price. The listing broker or agent and the buyer's or selling agent each receive an equal share of the commission. The most frequent type of listing agreement is an exclusive right to sell listing. For a predetermined amount of time, the broker has the sole authority to market the property under the terms of this agreement.

To know more about broker click on the link below:

brainly.com/question/17011472

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7 0
1 year ago
What is the most prominent rationing device you will likely find at your campus bookstore?
denpristay [2]

Doller price  the most prominent rationing device you will likely find at your campus bookstore. The amount of money an investor spends to buy a bond is referred to as the dollar price in bond pricing. The bond's face value, or par value, is the dollar price upon issuance.

The price of the bond will probably change from its face value and be quoted as a percentage of par if it is later sold to someone else on the secondary market before maturing. One of the two ways a bond price can be quoted is in dollars; the other is by its yield.

To learn more about dollars, click here.

brainly.com/question/28337215

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4 0
2 years ago
60 points ! Easy question !!!!!!!!!!!!!!!
Fantom [35]

Answer:

hope this help a all and have a good day!

Explanation:

There are two primary types of tort claims: intentional wrongs and negligence torts. Both types of wrongful actions can result in the victim filing a civil claim. As the name suggests, intentional torts are wrongful actions done purposefully. Negligence, however, does not require the intent to harm.

4 0
2 years ago
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