To complete the above question, please see below:
Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.)
<span>WACC 10.0% </span>
<span>Opportunity cost $100,000 </span>
<span>Net equipment cost (depreciable basis) $65,000 </span>
<span>Straight-line depreciation rate for equipment 33.333% </span>
<span>Annual sales revenues $123,000 </span>
<span>Annual operating costs (excl. depreciation) $25,000 </span>
<span>Tax rate 35%
</span>
The answer is <span>12,271</span>
A petty cash fund is used for small payments in order to avoid the time and cost of writing checks for small amounts.
<h3>What is petty cash?</h3>
A petty cash fund is a small amount of cash, used to pay for minor expenses, such as office supplies or employee reimbursements.
It is the pet a actual ledger book, rather than a computer record.
Hence, a petty cash fund is used for small payments in order to avoid the time and cost of writing checks for small amounts.
Learn more about petty cash here : brainly.com/question/6893535
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Answer:
Note: <em>The options attached belongs to another question, so the answer is not included</em>
Premium liability at December 31, 2020 = ((510,000*60%) - $130,000) / 8*3
Premium liability at December 31, 2020 = 176,000 / 24
Premium liability at December 31, 2020 = 7,333.33
Premium liability at December 31, 2021 = 7333.33 + ((600000*60%) - 150000) / 8*3
Premium liability at December 31, 2021 = 7333.33 + 360,000 - 150,000
Premium liability at December 31, 2021 = 217,333.33
Answer:
A. Opportunity Cost
Explanation:
Choice affecting an economic system, market can be studied by : Macro Economics which studies Economy as 'a whole'.
On contrary, Microeconomics studies individual units of economy & marginal analysis is a tool used frequently in it. And ,Normative Economics reflects subjective non verifiable statements about how economy 'should be'.
So , all of three are not apt to analyse the above statement.
However, Opportunity Cost reflects cost of next best alternative sacrifised while making an economic choice. So ,it is useful to analyse 'choice' affecting an economic system, market. Eg :Opportunity cost is an important tool used in determining comparative advantage of a country in producing a good based on its opportunity cost (other good sacrifised to produce it).
Answer:
the quantity of coal becomes more elastic
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