Answer:
Sunk costs.
Explanation:
Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.
Example
ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.
Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.
The reason could be that they want a higher education. 4 year degree is more rewarding than a 2 year degree. they want a higher education so they can get a better job that pays them even more. thats my opinion. remember this has to do more with money. the more you prepare yourself the more money you are able to get.
Investors can receive compounding returns by investing their earnings back into their original investment. For example, if they earn $10 from a stock they invested in, they would place that $10 back into the stock that earned them that money.
internet service providers
Answer:
a. Assets = Liabilities + Stockholder's Equity
Assets = Cash (7,000,000*$47) = -$32,90,00,000
b. Liabilities = No Effect
c. Stockholder's Equity = -$32,90,00,000
