Mufala, Inc., will issue $10,000,000 of 6% 10-year bonds. The market rate for bonds with similar risk and maturity is 8%. Intere
1 answer:
You might be interested in
Answer: Jessica's implicit costs are $46,000.
Implicit costs are the benefits that an individual gives up when they take a decision. Implicit costs are also known as opportunity costs.
In this case, Jessica will lose her salary of $40,000 each year. She will also lose the rent of $6000 a year from the building if she opens her fast food joint. So, total implicit costs are: