What do we call a cost that was already incurred and cannot be recovered in economics?

Sarah is an accountant with desires to open her own business. she is looking for office space at a reasonable rate along with in

seropon [69]

Sarah is an accountant with desires to open her own business. she is looking for office space at a reasonable rate along with internet service. of the conditions that need to be put in place for the entrepreneurial ecosystem, she needs social and cultural norms.

Social norms are unwritten rules about how to behave but also how things 'just are' within society. Sarah is use to having internat at a rate she can afford but needs to make sure the best rate for running her business approriately is in place. These norms are similar to cultural norms that are what is unspoken to us based on the environment in which we live. They may change as the environment adapts depending on each situation.

3 0

3 years ago

A new operating system for an existing machine is expected to cost $565,000 and have a useful life of six years. The system yiel

Inessa [10]

Answer:

The net present value of each potential investment:

Machine A Machine B

NPV $167,675 $2,267

Explanation:

a) Data and Calculations:

Machine A Machine B

Cost of machine $565,000 $410,000

Incremental after-tax income 165,000 75,000

Salvage value 25,000 26,000

Estimated useful life 6 years 8 years

Required rate of return 10% 10%

Annuity factor 4.355 5.335

PV factor 0.564 0.467

PV of incremental after-tax income $718,575 $400,125

($165,000*4.355) ($75,000*5.335)

PV of salvage value $14,100 $12,142

Total PV of income $732,675 $412,267

NPV $167,675 $2,267

= Total PV of income minus PV of initial investment cost

7 0

3 years ago

If ending accounts receivable exceeds the beginning accounts receivable Group of answer choices cash collections during the peri

sukhopar [10]

Answer:

no cash was collected during the period

or

cash collections during the year are less than the amount of revenue recognized

Explanation:

For example if we had Accounts receivable beginning balance $ 250,000 and Sales of $ 500,000 are made on accounts then the Total Accounts receivable will be $ 750,000.

But out of the $ 500,000 sales only $300,00 cash is collected and the remaining $ 200,000 is still in the Accounts receivable balance so the ending Accounts receivable balance will be $ 250,000 + $200,000 = $ 450,000 which will be greater than beginning Accounts receivable balance.

So there are two possibilities either cash collections during the year are less than the amount of revenue recognized.

or

no cash was collected during the period.

Similarly it cannot be choice no 1 : collections during the period exceed the amount of revenue recognized

Because if more cash is collected then ending account receivable balance would be less than the beginning account receivable balance.

Choice no 3 is also wrong if cash collections are more than the ending accounts receivable balance would be less

4 0

3 years ago

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of direct

kondor19780726 [428]

Number of shares: 410,000

Share price: $47

IF THE COMPANY USES STRAIGHT VOTING:

STEP 1: If the company uses straight voting, then the number of shares it should own would be half of the shares plus one share, in order to guarantee that the enough votes are received to win the election.

Number of shares needed = (Number of shares available for voting ÷ 2) + 1

Number of shares needed = (410,000 ÷ 2) + 1

Number of shares needed = 205,001

STEP 2: Total cost will be the product of share price and number of shares needed.

Total Cost = Share Price × Number of shares needed

Total Cost = $ 47 × 205,001

Total Cost = $ 9,635,047

<u>It will cost $9,635,047 if the company uses straight voting.</u>

IF THE COMPANY USES CUMULATIVE VOTING :

STEP 1: If the company uses cumulative voting, you need 1/(N+1) percent of stock plus one share to get maximum number of votes to win the election.

Percent of stock needed = [1 ÷ (N + 1)] * 100

Percent of stock needed = [1 ÷ (3 + 1)]* 100

Percent of stock needed = (1 ÷ 4) * 100

Percent of stock needed = 25%

So the number of shares purchased = (410,000 × 25%)

Number of shares purchased = 102,500

Total Cost = Number of shares purchased × Share Price

Total Cost = 102,500 × $47

Total Cost = $4,817,500

It will cost $4,817,500 if the company uses cumulative voting.

6 0

3 years ago

Which is NOT a step in a career plan?

zepelin [54]

Answer:

D. go on vacation to the beach

3 0

3 years ago

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