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3 years ago

Select the items below that describe rational behavior in economics

1 answer:

3 0

In economics rational behavior involves getting the most satsfaction from a choice and working within the given conditions.

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Tax planning Question 6 options: guides investment activities to maximize after-tax returns over the long term for an acceptable

krok68 [10]

Answer:

guides investment activities to maximize after-tax returns over the long term for an acceptable level of risk

Explanation:

Given that the purpose of Tax planning is to ensure that there is tax efficiency for the firm, in an after-tax evaluation, the goal of the firm in terms of returns or profits is toll achieved.

Hence, in this case, the correct answer to the question is that TAX PLANNING "guides investment activities to maximize after-tax returns over the long term for an acceptable level of risk."

8 0

3 years ago

Giselle wants to buy a condo that has a purchase price of $163,000. Giselle earns $2,986 a month and wants to spend no more than

galina1969 [7]

Answer:

<u>Giselle should purchase points</u> to lower the interest rate of the mortage, this will make the cuota decrease.

Explanation:

163000 x20% = 32,600

163,000 - 32,600 = 130,040

current mortgage cuota:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

$C \times \frac{1-(1+0.0625/12)^{-30*12} }{0.0625/12} = 130,040\\$

C= 800.68

800.68/ 2,986 = 0.2681 = 26.81%

this cuota exeeds the desired amount Giselle wants.

her couta can be as much as 2,986 x 25% = 746.5

<u>Giselle should purchase points</u> to lower the interest rate of the mortage, this will make the cuota decrease.

3 0

3 years ago

After graduation, you face a choice. One option is to work for a multinational consulting firm and earn a starting salary (ben

saveliy_v [14]

Answer:

Total explicit cost = $39,000

Implicit cost = $40,420

Accounting profit = $108,600

Economic profit = $68,180

Explanation:

Total explicit costs will be the total amount spent.

Therefore explicit costs =

Rent + office supplies + office staff + telephone expenses

Explicit costs = 10000 + 1000 + 24000 + 4000 = $39,000

Implicit costs= 40000 + (6000 * 0.07) =$40,420

Accounting profit = Total revenue - Total explicit costs

Accounting profit = $147,600 - $39,000 = $108,000

Economic profit = Total revenue - Total opportunity cost.

(Where total opportunity cost= explicit cost + implicit cost)

Therefore economic profits =

$147,600 - ($39,000+$40,420)

= $68,180.

Therefore,

Total explicit cost = $39,000

Implicit cost = $40,420

Accounting profit = $108,600

Economic profit = $68,180

5 0

3 years ago

Read 2 more answers

How does competition in a free-market system effect the game of economics?

frez [133]

A free market is where the prices of good ands service are detirmined by the open market and consumers, in which the laws and forces of supply and demand are controlled by government or any other authority.

8 0

3 years ago

Helpful in assessing the risk of lending to investors for particular projects, which of the following calculations measures the

Degger [83]

Answer:

C. Financial risk ratios

Explanation:

Financial risk ratios are calculated to measure the financial risk of the company. It measure the financial capability of an entity. For lending purpose the lender has to ensure that is the borrower able to repay the borrowed amount and interest on it. The lender need to estimate the capability of the borrower for payment of loan back. These ratio care Debt to capital ratio, Coverage ratio etc.

7 0

3 years ago

Read 2 more answers