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dusya [7]
2 years ago
13

Kelly has decided to start his own business giving sailing lessons. To purchase equipment for the business, Kelly withdrew $1,00

0 from his savings account, which was earning 3% interest, and borrowed an additional $2,000 from the bank at an interest rate of 7%. What is Kelly's annual opportunity cost (implicit plus explicit costs) of the financial capital that has been invested in the business?
A) $170
B) $140
C) $30
D) $300
Business
1 answer:
sergeinik [125]2 years ago
7 0

Answer:

$170

Explanation:

Since Kelly withdrew $1000, he lost the potential $30 he could've earned in interest. Also, when he borrowed $2000, the interest rate of 7% was $140. So, the implicit+explicit cost is 140 + 30 = $170.

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Which is not a mandatory subject matter for good-faith bargaining? a. seniority b. insurance c. pension plans d. strike vote e.
maksim [4K]

Answer:

The correct answer is letter "D": strike vote.

Explanation:

Collective Bargaining is the act by which employees organized in labor unions negotiate with employers (mainly managers) about compensations and work conditions. <em>Wages, working hours, merit pay, </em>and <em>vacation length</em>, are common topics of discussion between the two parties.

<em>A strike is the stop of operations of a company because of unattended labor union request. The decision of going on a strike or not relies merely on the union and the </em><u><em>strike vote</em></u><em> is subject to that group only.</em>

4 0
3 years ago
A firm, with an 18% cost of capital, is considering the
mafiozo [28]

Answer:

a. $316,920

Explanation:

The computation of the net present value for Project A is shown below:

The net present value = Cash inflow after considering the discount factor - initial cost or initial investment

Cash inflow after considering the discount factor = $7,400,000

The discount factor for 4 years at 18% = 0.5158

So, the cash inflow is

= $7,400,000 × 0.5158

= $3,816,920

And, the initial investment is $3,500,000

So, the net present value is

= $3,816,920 -  $3,500,000

= $316,920

3 0
3 years ago
Colbert operates a catering service on the accrual method. In November of year 1 Colbert received a payment of $9,000 for 18 mon
Shalnov [3]

Answer:

b) $500 is recognized in year 1 and $8,500 in year 2.

Explanation:

The calculation is shown below:

Since the payment is received for 18 months of $9,000

So for one month, the payment is

= $9,000 ÷ 18 months

= $500

This $500 should be recognized in year 1 and the remaining amount i.e

= $9,000 - $500

= $8,500

This $8,500 should be recognized in year 2

Hence, b option is correct

6 0
3 years ago
Perfectly competitive firms: a. are individually able to influence the market price. b. can influence the prices of other firms
spayn [35]

Answer:

the answer is b

Explanation:

took test

6 0
3 years ago
Caroline has been paying her mortgage steadily for fifteen years. She has just received a notice from her lender that the loan d
shtirl [24]

Answer: A ballon note

Explanation: A balloon payment mortgage is a mortgage which does not fully amortize over the term of the note, thus leaving a balance due at maturity. The final payment is called a balloon payment because of its large size. Balloon payment mortgages are more common in commercial real estate than in residential real estate.A balloon loan is a loan that you pay off with a single, final payment. Instead of a fixed monthly payment that gradually eliminates your debt, you typically make relatively small monthly payments. But those payments are not sufficient to pay off the loan before it comes due. As a result, you need to make a final “balloon” payment to pay off the remaining loan balance, and that payment may be significant.

7 0
3 years ago
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