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Lesechka [4]
3 years ago
8

gdaniel is working in a job that pays $18,000 per year. He is considering a one-year automobile mechanics course that costs $1,0

00 for books and tuition. He would stop working for a year while he attends this course. Daniel estimates that this course will increase his income to $23,000 in each of the three years following completion of the course. At the end of those three years, Daniel plans to retire to a commune in Tucson, AZ. The current interest rate is 10 percent. Is it economically rational for Daniel to enroll in the course? Explain and justify your answer.
Business
1 answer:
jeyben [28]3 years ago
5 0

Answer:

It is not economically rational for Daniel to enroll in the course

Explanation:

Increase in income = $23,000 - $18,000 = $5,000

i = 10% = 0.1

NPV = -(18,000 + 1,000) + 5,000/(1.1)^1 + 5,000/(1.1)^2 + 5,000/(1.1)^3

NPV = -17,000 + (4545.45 + 4132.22 + 3756.74)

NPV = -17,000 + 12,434.41

NPV = -4,565.59

Conclusion: Since NPV is Negative. Therefore, it is not economically rational. So the answer is NO.

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You are the project manager assigned to a project to upgrade an old bus shelter. The shelter is located along South Street trave
Zarrin [17]

Answer:

Risks of the project include

disruption in the highway during renovation process. - High risk

Poor material used in the construction - High risk

Rainfall may delay the work process. - Medium risk

Traffic flow management will be difficult during peak hours. - Medium risk

Dust and noise during the construction will disturb the society. - Low risk

Explanation:

The risk register includes Risk description, its impact in terms of probability and measures to mitigate such risk. There are many potential risks that are associated with the construction of the bus shelter. The risks are not acceptable as the highway disruption should be kept to minimum and any delay in the work is not tolerable. These risks are reduced by deploying extra labors so that the renovation work is completed on time.

4 0
3 years ago
The following information was taken from the financial statements of Fox Resources for December 31 of the current fiscal year: C
WINSTONCH [101]

Answer:

Fox Resources

Units of common stock in issue = $5,000,000 divided $20 = 250,000 units

A. Earnings per share = Net income (after deducting preferred stock interest) divided by number of outstanding shares in issue

We assume the Net income provided already has deducted interest on preferred stock

= 600,000/250,000

= $2.4

B. Price Earning Ratio

= share price divided by the Earnings per share

= 20/2.4

= 8.33

C. Dividend Per share

= Dividend paid divided by number of common stock issued & outstanding

= $125,000/250,000

= $0.50

6 0
3 years ago
Select the correct statement regarding the contribution margin ratio. Multiple Choice The contribution margin ratio equals contr
Art [367]

Answer:

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

Explanation:

Contribution margin ratio = \frac{Contribution\:per\:unit}{Selling\:price\:per\:unit}

This can even be done by \frac{Total\:Contribution\:}{Total\:Sales}

This will calculate contribution as a percentage of Sales, with this margin ratio we get break even sales value, and not the units.

Whenever there is an increase in variable cost it decreases the contribution.

Therefore, correct statement is

The contribution margin ratio can be calculated using either total amounts or per unit amounts.

8 0
3 years ago
Which animals in the food web are secondary consumer ?​
ValentinkaMS [17]

Answer:

Soooooooooooooo the examples of secondary consumers include bluegill, small fish, crayfish and frogs.

Explanation:

5 0
3 years ago
Becca has $500 to open a checking account. She wants an account with the lowest fees. She writes about 12 checks per month and h
Vinvika [58]

Answer:

Low balance checking account

Explanation:

Since Becca has a small amount of money, only $500, and only uses the ATM around 4 times per month, her best option is a low balance checking account. This type of checking account works very well for people that can only keep a small balance. Many banks don't charge fees for this type of account as long as you write only a limited number of checks, your bank statement is sent to you online, and you use only  their ATMs.

The other types of checking accounts usually require much higher balances, and of the minimum balance is not met, then they will charge you a monthly fee.

7 0
3 years ago
Read 2 more answers
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