Answer:
C. $4000
Explanation:
Given that
Total opportunity cost = salary plus interest forgone, that is 50,000 + 6% of 100,000
= 50,000 + 6000 = 56,000.
Total revenue received = 60,000
Recall that
Economic profits = Revenue - (implicit + explicit cost)
And that
Implicit cost = opportunity cost = 56,000
Explicit cost = 0 (from the question, revenue covered it)
Thus
Economic profit = 60000 - 56000
= $4000
D because a discount is an upfront guaranteed incentive
Answer:
How much do you make in interest in a year?
<u>$ 1100</u>
How much would you need to have made for your spending power to keep up with inflation in that year?
<u>$ 1782
</u>
How much buying power did you lose in that year because of inflation?
<u>$ 682
</u>
Explanation:
Your interest formula is given to you.
Interest in a year = principal (the amount invested) * rate (the interest rate) * period (the time you're measuring)
Interest = 55,000 * 2% * 1 year = 55,000 * 0.02 * 1 = $1,100
How much would you need to have made for your spending power to keep with inflation? Your interest rate would have needed to match the inflation rate, otherwise prices are going up faster than you're saving.
Required interest = 55,000 * 3.24% * 1 year = 55,000 * 0.0324 * 1 = $1,782
How much buying power did you lose? The difference between your required interest and your actual interest.
Buying power lost = 1,782 - 1,100 = $682. You lost this much in buying power.
Hope that helped :)
Answer:
accounting profit from her first year = $184000
so correct option is D. $184,000
Explanation:
given data
earning = $223,000 per year
generated revenues = $347,000
explicit costs = $163,000
to find out
accounting profit from her first year
solution
we know that accounting profit is the difference between explicit cost and explicit revenue so
we get accounting profit from her first year is as
accounting profit from her first year = generated revenues - explicit costs .................1
put here value we get
accounting profit from her first year = $347000 - $163000
accounting profit from her first year = $184000
so correct option is D. $184,000
Answer:
$14 mil.
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator:
Cash flow in year 0 = $-30 million
Cash flow in year 1 = $13,000,000
Cash flow in year 2 = $23,000,000
Cash flow in year 3 = 29,000,000
I = 20%
NPV = $13,587,630
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
