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lbvjy [14]
3 years ago
14

Which of the following statements is NOT CORRECT? a. Sunk costs are the costs associated with "the road not taken". They represe

nt the alternative cost of an asset if that asset were not already owned by the firm; therefore, these costs should be included in the capital budgeting analysis. b. Opportunity costs and sunk costs are tricky when analyzing capital budgeting projects. In summary, for a correct capital budgeting analysis, opportunity costs must be included in the analysis while sunk costs should be ignored—the money is gone whether the project is undertaken or not. c. Sunk costs are cash outlays a company has made in the past, and they can't be recovered whether the new project goes forward or not. Thus, you don't include these costs in the project's capital budgeting analysis. d. An opportunity cost represents the best return a company could get on an asset it already owns. It is the cost of losing out on something if you greenlight the project, so you want to include this cost in the capital budgeting analysis. e. While an opportunity cost is not an actual cash outlay, this cost must be added to the project's costs when you calculate its net present value.
Business
1 answer:
Ann [662]3 years ago
6 0

Answer:

A

Explanation:

Sunk cost is cost that has already been incurred and cannot be recovered. It should not be considered in making future decisions.

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Opportunity costs are costs associated with "the road not taken".

An example of opportunity cost : you quit your job where you ern $50,000 to start your business. the opportunity cost of starting your business is $50,000 - your salary that you would be forgoing to start your business

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The Blackburn Group has recently issued 20minus​year, unsecured bonds rated BB by​ Moody's. These bonds yield 443 basis points a
MArishka [77]

Answer:

Explanation:

First, convert the basis points to a percentage or decimal;

1 basis point = 0.01% or 0.0001 as a decimal

Then 443 basis points as a decimal will be;

443 *0.0001 = 0.0443 or 4.43% as a percentage

Next, since the BB bond is 4.43% above the U.S. Treasury yield of 2.76%, find the Yield to maturity(YTM) by adding the 4.43% to the 2.76%;

YTM = 2.76% + 4.43%

YTM = 7.19%

4 0
3 years ago
which theory of economics believes the only way to increase economy growth is to remove regulations and lower taxes?
JulijaS [17]
Answer: Supply Side Theory.
4 0
2 years ago
. Distinguish between the short run and the long run as they relate to macroeconomics. Why is the distinction important
STALIN [3.7K]

Answer:

1. In the short run, wages and other prices are stagnant making the economy to run below or above the normal level. In the long run, wages and prices are fully flexible, and this allows the economy to run at its natural level.

2. This distinction is important because it helps us to see how difficult it could be to sustain the real gross domestic product and employment rates thus making the economy to run at a normal level or achieve its full potentials.  

Explanation:

Stickiness or stagnancy of wages can be seen in the fact that it is most time difficult to fluctuate or change the wages of workers overtime. The prices of most goods are also sticky when they remain unchanged over a given period of time. These conditions exist in the short run, and make the economy to run above or below its full potentials. The real GDP and unemployment levels are negatively affected.

In the long run, flexibility of wages and prices are achieved and this makes the economy to run at its full potentials. The real GDP as well as the employment rate are at their optimum level then.

5 0
3 years ago
Tobin Supplies Company expects sales next year to be $520,000. Inventory and accounts receivable will increase $90,000 to accomm
elena-s [515]

Answer:

$17,200

Explanation:

Calculation to determine How much external financing will Tobin Supplies Company have to seek

Net Income=[$520,000 x 20%]

Net Income = $104,000

Dividend Pay-out= [$104,000 x 30%]

Dividend Pay-out = $31,200

Additions to Retained Earnings = [$104,00 - $31,200]

Additions to Retained Earnings=$72,800

Now let determine the The External Financing Needed using this formula

The External Financing Needed = Increase in Assets – Additions to retained earnings

Let plug in the formula

The External Financing Needed= $90,000 - $72,800

The External Financing Needed= $17,200

Therefore The External Financing Needed is $17,200

7 0
3 years ago
Simplify the expression 2\5(5k+35)8
Grace [21]
2/5(40k)8 that's your answer. I'm in 8th grade iTS NOT HE RIGHT ANSWER I GUESSED

3 0
3 years ago
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