Answer:
$348,000
Explanation:
Opportunity cost = Market value of land + Market value of the equipment
= $209,500 + $139,000
= $348,000
Therefore, the opportunity cost to be incurred in the initial cost is $348,000. Note: $7,500 is idea for this project, so it is not an opportunity cost
Answer:
The correct answer is: they benefit by doing so.
Explanation:
Thanks to their interaction, human beings can satisfy their needs. People organize conveniently so their resources can be used to produce the goods and services they naturally demand -food, clothing, and shelter. This is the reason why governments must promote healthy living in societies so individuals can get the most of each other benefiting themselves.
Answer:
5.98 years
Explanation:
The computation of the payback period is shown below:
In year 0 = -$1,530,000
In year 1 = $305,000
In year 2 = $270,000
In year 3 = $240,000
In year 4 = $240,000
In year 5 = $240,000
In year 6 = $240,000
In year 7 = $240,000
In year 8 = $240,000
In year 9 = $240,000
In year 10 = $240,000
If we added the first 5 year cash inflows than it would be $1,295,000
Now we have to subtract the $1,295,000 from the $1,530,000 , so the amount would be $235,000 as if we sum the six year cash inflow so the total amount is exceeded to the initial investment. So, we subtract it
And, the next year cash inflow is $240,000
So, the payback period equal to
= 5 years + $235,000 ÷ $240,000
= 5.98 years
