Answer:
The chosen option (considering enrollment costs and opportunity cost) is:
b) College course.
Explanation:
a) Data and Calculations:
Costs/Benefits
College Course Community Course
Cost $2,600 $1,390
Opportunity costs -2,080 2,080
Net costs $520 $3,470
Distance to course 0.40 miles 16 miles
(walking distance) (driving distance)
Timing of course Weekday Weekend
Number of meetings 16 8
b) With the College course option, you will earn $2,080 ($260 * 8) weekdays to offset part of the enrollment cost. With the Community course option, $2,080 will be lost in opportunity cost, thereby increasing the total costs incurred. These costs are apart from the driving costs associated with traveling 16 miles to the Community Course at the local library.
A similarity between mortgages and auto loans is that both are less risky for lenders.
Lenders are the ones who lend money to those who need it urgently, in the form of a mortgage, or perhaps an auto loan. This money is going to be repaid monthly, or in whatever way the contract stipulates. It is less risky for the lender because legally, this has to be repaid.
Answer: $351,000
Explanation:
Given that,
Cost of inventory = $350,000
Selling price = $675,000
Beginning balance of inventory = $86,000
Beginning balance of accounts payable = $116,000
ending balance of inventory = $94,000
ending balance of accounts payable = $123,000
Cash paid to suppliers:
= Cost of Goods Sold + Change in inventory - Change in accounts payable
= 350,000 + (94,000-86,000) - (123,000-116,000)
= 350,000 + 8,000 - 7,000
= $351,000
Answer:
REJECTED
It fails the payback test.
Explanation:
first, we check if payback occurs at year 3;
payback:
-175,000
-65,800
+94,000
<u> +41,000</u>
-105,800
the cashflow until year 3 aren't positive thus, the payback is not achieve
As the discount paymback will make the future cash inflow lower than nominal; the discounted payback will also not be achieve.
Last, let's check if the net present value of the project at 11% is positve:
The project achieve a psoitive value at the discount rate of 11%
But, It will be rejected as it fails the payback tests.