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BARSIC [14]
2 years ago
5

Lara Technologies is considering a cash outlay of $227,000 for the purchase of land, which it could lease out for $36,150 per ye

ar. If alternative investments that yield a 15% return are available, the opportunity cost of the purchase of the land is
Business
1 answer:
HACTEHA [7]2 years ago
6 0

Answer:

the opportunity cost of the land purchase is $34,050

Explanation:

The computation of the opportunity cost of the land purchase is shown below;

= Cash outlay × return percentage

= $227,000 × 15%

= $34,050

Hence the opportunity cost of the land purchase is $34,050

We simply multiplied the cash outlay with the return percentage so the same would be calculated

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Brief, Inc., had a receivable from a foreign customer that is payable in the customer’s local currency. On December 31,2017, Bri
Pachacha [2.7K]

Answer:

The Foreign exchange gain is $10,000.

Explanation:

The amount of gain that should be reported as the foreign exchange loss is the excess of dollar equivalent over reported local currency units (LUCs), so the Foreign exchange gain is calculated as follows:

Foreign exchange gain = dollar equivalent - local currency units

                                       = $120,000 - $110,000

                                       = $10,000

Therefore, The Foreign exchange gain is $10,000.

6 0
3 years ago
Kelly and Tim Browne plan to refinance their mortgage to obtain a lower interest rate. The Browns will reduce their mortgage pay
shtirl [24]

Answer:

16.9 months

Explanation:

Recovery time = Refinancing cost / Monthly savings

= $2,500 / $148

= 16.9 months

6 0
3 years ago
Someone please help me.
Elanso [62]
In my understanding, this assignment wants you to evaluate the decision made by the management officer, in her attempt to improve the business position.

First of all, net profit figure shows the profitability of the business. Net profit figure means the total profit earned minus all the costs incurred in running the business. Higher net profit figure in year 1 might indicate a favourable position, as it could be that higher profit is generated from using whatever method/machine they use in year 1, or running this machine incurred less cost. In year 2, they didn't necessarily earn lower profit, but running the new machine might be more costly.

Next, rate of productivity growth refers to the growth in quantity of output produced. If more output can be produced, this means higher efficiency. This means that the efficiency of production in year 2 is more than in year 1.

Thirdly, the number of customer's complaints is important in evaluating the business' goodwill, in this case, its position in the society. Without good relationship with the public, a company may lose its customer. It is always important to keep clients satisfied since they're the source of income to the business. This means that the management decision in year 2 is more favourable than in year 1.

Last but not least, rate of absenteeism can be evaluated in terms of productivity . Higher absenteeism means lower productivity, lower output but higher cost to the business since they're paying salaries to workers who don't produce output to sell. Less output to sell means less income can be earned. In year 1, the business productivity is higher than in year 2.

In year 2, the business has a boost in their efficiency & reputation. Although less profit earned, it is likely that this will grow in the future. Staff attendance can be improved by encouragement such as giving incentives for example, provision of more holidays.

I hope this is helpful!
6 0
3 years ago
On October 1, 2020 Bonita Industries issued 5%, 10-year bonds with a face value of $8090000 at 103. Interest is paid on October
V125BC [204]

Answer:

a credit of $242700 to Premium on Bonds Payable

Explanation:

Based on the information given The journal entry to record the issuance of the bonds would include a credit of $242700 to Premium on Bonds Payable which is calculated as:

Premium on Bonds Payable=[($8090000*103%)-$8090000

Premium on Bonds Payable=8,332,700-$8090000

Premium on Bonds Payable=$242700

Therefore The entry to record the issuance of the bonds would include a credit of $242700 to Premium on Bonds Payable

6 0
2 years ago
Tom is a junk remover who occasionally finds rare antiques to sell. He uses an online auction site to sell each antique for the
Hunter-Best [27]

Answer:

Option (b) is correct.

Explanation:

There are three types of price discrimination:

(i) First degree price discrimination or Perfect price discrimination

(ii) Second degree price discrimination

(iii) Third degree price discrimination

Perfect price discrimination refers to a situation in which the selling price of the product is equal to the price that a consumer willingness to pay for the product. This is a situation in which there is no consumer surplus.

Consumer surplus = Actual price paid by the consumer - Willingness to pay for the product

4 0
3 years ago
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