**Answer:**

**d. $1,000**

**Explanation:**

**Implicit cost is the cost which has been incurred, and cannot be avoided. It is best described as an opportunity cost that has been foregone**, here the funds have been borrowed specially for coffee shop. Interest expense of $8,000 is the cost for such borrowing, also the amount withdrawn from savings account have been used for coffee shop but the interest income foregone is the opportunity cost = $50,000.00 2% = $1,000 is implicit cost.

**Therefore, correct option is d. $1,000**

The correct answer is false.

The given statement is false, why? You cannot always want the lowest deductible since it may only be applied once something has happened that points out towards you, or in other words, it is your fault. An example of lowest deductible is when you get into a car accident and it was your fault, the total repair cost of the vehicle is at 1,400.00 dollars, your lowest deductible would be around 500 dollars, wherein you have to add it to the balance before your insurance company pays for the rest

**Answer:**

Beginning inventory + net purchase = merchandise available for sale

**Explanation:**

Beginning inventory + net purchase = merchandise available for sale is the statement that correctly describes the flow of costs in a merchandiser's accounting cycle, in the given options.

The fact remains true that 'Goods Available For Sale' is not just an accounting concept but as the name implies, it is the beginning inventory and any purchased inventory within the period that will constitute the amount of goods available for sale.

If we had 10 units left from last period and we purchase 90 units this period, we will only have 100 units available for sale.

**Answer:**

<em>** A. both parties to a transaction can act independently of each other and make economically rational decisions.**</em>

**Explanation:**

<em>According to the belief of arm's-length transaction</em>, **OPTION (A) is correct. **

Because an arm's length transaction is a kind of a business trading in this the **<em>consumers as well as the trader are given that much freedom, that they can act with freedom in an independent way. </em>**

And also in this type of transaction, both of them do not carry any relationship; here both of them implies the consumer and the trader.

Net present value (NPV) analysis is useful for determining
the current value of a stream of cash flows that extend out into the future. To
calculate net present value, we use the following formula:

NPV = X * [(1+r)^n - 1]/[r * (1+r)^n]

Where:

X = The amount received per period

n = The number of periods

r = The rate of return

npv = 875,000 * [(1+0.11)^7 - 1]/[0.11 * (1+0.11)^7]

= $ 7,954, 545