answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
meriva
2 years ago
14

Reece has decided to start his own brewery. To purchase the necessary equipment, Reece withdrew $20,000 from his savings account

, which was earning 3% interest, and borrowed an additional $50,000 from the bank at an interest rate of 5%. What is Reece's annual opportunity cost of the financial capital that has been invested in the business?
Business
1 answer:
KengaRu [80]2 years ago
8 0

Answer:

The opportunity cost is the income earned from her balance on savings account at the interest rate of 3% per year that Reece would received if she had not opened her owned brewery business. This opportunity cost is $600 per year.

Explanation:

Please find the below for further explanation and calculations:

The opportunity cost per one year = Income earned on saving account per one year = 20,000 x 3% = $600;

The reason why it is an opportunity cost is because as a result of opening brewery business, Reece sacrifices the income earned on this saving, instead, she contributes the saving fund to her brewery business.

You might be interested in
Beverly, the manager of a branch location of a large law firm, treated company resources as if they were her own and encouraged
fiasKO [112]

Answer:

The correct answer is E

Explanation:

Servant leader is the kind of leadership which is defined as the philosophy as well as the set of the practices that enriches the individuals lives and builds the better firm and also establish the most caring world.

This leadership focus on offering the increased services to others. So, the characteristics involve the belief that they are stewards of their employees and the resources as well as commitment to the people growth.

5 0
2 years ago
Read 2 more answers
Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the com
finlep [7]

Answer:

Ke = D1/Po(1-F) + g

Ke = $0.65/17(1-0.1) + 0.06

Ke = 0.0425 + 0.06

ke = 0.1025 = 10.25%

WACC = Ke(E/V) + Kd(D/V)(1-T)

WACC = 10.25(55/100) + 7.75(45/100)(1-0.4)

WACC = 5.6375 + 2.0925

WACC = 7.73%

Explanation:

In this case, there is need to calculate cost of equity in the light of floatation cost using the above formula. Thus, we will now calculate WACC by considering cost of equity and the proportion of equity in the capital structure plus after-tax cost of debt and the proportion of debt in the capital structure.

6 0
2 years ago
How can u prove that the traditional technology is the foundation of modern technology short answer​
maks197457 [2]
Because a lot of modern technology mimics traditional technology, it just got faster and better
5 0
2 years ago
Imagine you have just bought some property and notice that the trees on the slope have curved trunks. what type of landslide eve
tigry1 [53]

The type of landslide event that the property most likely has is CREEP. Creep is the slowest type of mass wasting that requires years of gradual movement to have an effect on a slope. Slopes creep because of the expansion and contraction of a surface sediment as well as the pull of gravity. 

7 0
2 years ago
Calgary Industries is preparing a budgeted income statement for 2018 and has accumulated the following information. Predicted sa
Irina-Kira [14]

Answer:

Net Income      186,900

Explanation:

sales                                   730,000

variable cost

40% of sales

40% of 730,000 =            (292,000)

Selling expense                 (81,000)

Administrative expense    (90,000)

Earnigns before taxes        267,000

income tax expense

30% of EBT

30% of 267,000  =               (80,100)

Net Income                         186,900

8 0
2 years ago
Other questions:
  • An industrial buying practice in which two organizations agree to purchase each other's products and services is referred to as
    13·1 answer
  • A drought decreases the supply of agricultural products, which means that at any given price a lower quantity will be supplied;
    13·1 answer
  • The Southside Sweetery has a loyal following. When it recently moved from its longtime storefront to a famous resort area, it to
    15·1 answer
  • Kaila Company's financial statements show a net income of $567,000 in 2019. The following items also appear on Kaila's balance s
    8·1 answer
  • Choose all that apply.
    10·1 answer
  • An opinion polling firm based in Austin, TX wants to allow its phone survey specialists to use company laptops and networks to c
    12·1 answer
  • Break-Even Analysis The Parents for Better Schools of Fresno, California, collected recipes from members and published a cookboo
    5·1 answer
  • Northern purchased the entire business of Southern including all its assets and liabilities for $2,400,000 on December 31, 2021.
    11·1 answer
  • Peter Ittig's department store, Ittig Brothers, is Amherst's largest independent clothier. The store receives an average of 8 re
    15·1 answer
  • The game hides the amount of cookies-per-second a new "vendor" (the grandmothers, the cookie farm, the mines, etc.) will grant y
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!