Answer:
E $75
Explanation:
Using CAMP we solve for the Cost of equity on each and determinate which project are worht to invest on it
A
risk free = 0.045
rate premium market = (market rate - risk free) = 0.055
beta(non diversifiable risk) = 0.93
Ke 0.09615 = 9.615%
A 9.615% - 2.00% = 7.615% As the return is 7.60% we should <em>reject</em>
B 9.615% - 1% = 8.615% return of 9.15% we should <u>Accept</u>
C return of 10.10% while Ke 9.615% <u>Accepted</u>
D 9.615% + 1% = 10.615% return of 10.40% <em>rejected</em>
E 9.615% + 2% = 11.615% against 10.80% yield <em>rejected</em>
F cost of 11.615% ith return of 10.90% <em>rejected</em>
G cost of 11.615% with return of 13.00% <u>Accepted</u>
We accept three projectthus, we require $75
Opportunity cost is concept used in economics. It denotes the benefit of something that must be given up to acquire or achieve something else. Because of this opportunity cost is used in the decision-making process. The following best describes an opportunity cost: decision giving up an opportunity to do something else when making an . Correct answer: B
Answer:
diminishing marginal utility
Explanation:
According to diminishing marginal utility, the utility of consuming an extra unit increases until a point. After that, the utility tends to diminish from consuming an extra unit. The marginal benefit to society of reducing pollution declines due to diminishing marginal utility concept. The benefit of a decrease in pollution starts to decline after a certain period of time.
Answer:
Play miniature golf instead of renting the movie.
Explanation: Marginal utility is the added satisfaction derived from spending an extra unit of money.
Now we can see that the consumer values time at $12 per hour, and they'll spend a total of $24 on watching the DVD because this will take 2 hours, the consumer will also spend just $12 on miniature golf because this takes just one hour.
Now factoring the costs of the DVD and the miniature golf into the equation, we have:
Total cost of renting and watching the DVD:
$4 + $24 = $28
Total cost of playing miniature golf:
$13 + $12 = $25
We can see that the consumer will spend less in playing miniature, while getting the same marginal utility with the other option.
