Bills accounting profit is
equals to revenue ($250,000) minus explicit (monetary) cost (50,000 and
30,000), while his economic profit is equals to accounting profit minus
implicit (opportunity) cost (3,000 and 100,000). Accounting profit is $170,000
and Economic profit is $67,000.
<span>Economic profit is always lower
than accounting profit because explicit costs and implicit costs are both
deducted to revenue. Implicit costs are cost that he should have earned if he
gives up his present resources. These costs are projected cost and are not yet
incurred.</span>
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
The projects which maximize Vanguard's shareholder wealth are Project A; Project B; Project D.
Explanation:
Projects which maximize the shareholder value are projects delivering Expected Returns which are higher than its risk-adjusted weighted average cost of capital (WACC).
As a result, Project A with Expected return of 15% and risk adjusted WACC of 12%; Project B with Expected return of 12% and risk adjusted WACC of 10%; Project D with Expected return of 9% and risk adjusted WACC of 8%; are the projects that maximize the shareholder's value.
On the other hand, Project C with Expected return of 11% and risk adjusted WACC of 12% is harmful to shareholder value.
<span>The current state of the US economy is in growing strength with respects to the former cabinet. Globalization is affecting the US economy. Primarily through technology and social feeds. We are in the information Era. As far as jobs, off shoring in our economy was once always a viable option. Now that we have a president who insists on the "American Made" branding has emboldened some companies to minimize their operations abroad and increase facilities at home. I work on software, and my job requires me to be in a wireless world. It is hard to compete with companies who hire third party IT hosts in other countries because it is simply cheaper. But, I find other means for work.</span>
Answer and Explanation:
The court can hold that Hemmerling is an employee of the Happy Cab Co. in several cases:
1) The standard operating procedures followed by Hemmerling that is stated by Happy Cab Co. such as abiding by variety of rules, the hours he could work and solicitation of fares.
2) Hemmerling also paid fixed expenses and the car provided by the cab company suggest that he works for the company just like any other employer employee relationship.
