Answer:
Opportunity cost = $6900 monthly or $82800 yearly.
Explanation:
Opportunity cost = $6900 monthly or $82800 yearly.
The opportunity cost is the gain forgone for the other alternative, or ultimately a loss to acquire other opportunity.
Here, the opportunity cost is gain of $6900 forgone to operate the fitness studio within the store by Nike.
Answer:
d.All of these choices would reduce risk for your portfolio and therefore show at least some benefit to diversification
Explanation:
Which of the following securities could NOT have any benefits for diversification with your investment portfolio? All of these choices would reduce risk for your portfolio and therefore show at least some benefit to diversification
Answer:
The book value of the machine at the end of year 2 is $35,000
Explanation:
Straight line method depreciates the asset on its useful life after deducting salvage value from the cost of the asset.
Depreciation per year = ( Cost of Machine - Residual Value ) / Useful life
Depreciation per year = ( $42,000 - $7,000 ) / 10 years
Depreciation per year = $3,500 per year
Book value of machine at the end of year 2 = $42,000 - ( $3,500 x 2 )
Book value of machine at the end of year 2 = $42,000 - $7,000
Book value of machine at the end of year 2 = $35,000
Answer:
Specialty goods are the products which require high efforts in purchasing because their cost is certainly high, consumers cant take a risk of buying them frequently, like sporting cars, high end cameras, luxury high end clothing etc. There are many industries in specialty goods in which you can see intense level of rivalry. For example, in sporting cars, you have multiple brands which have very severe kind of rivalry like Jaguar and BMW - Lexus and Lotus, they not compete in cars but they compete in their advertisements, evenest as well.
Whereas, when you consider, photographic camera industry, you will also find intense kind of rivalry between Canon and Sony, Leica and Olympus. Here they not only face direct competition from other camera brands, but they also have to face competition from the cell phone industry, which also provide high end cameras in their cell phones like iPhone, Samsung and Oppo etc.
Answer:
Investor A = $545216 .
Investor B = $352377
Investor C = $897594
Explanation:
Annual rate ( r ) = 9.38%
N = 41 years
<u> Calculate the balance at age of 65</u>
1) For Investor A
balance at the end of 10 years
= $2000 (FIA, 9.38 %, 10) (1 + 0.0938) ≈ $33845
Hence at the end of 65 years ( balance )
= $33845 (FIP, 9.38 %, 31) ≈ $545216 .
2) For investor B
at the age of 65 years ( balance )
= $2000 (FIP, 9.38%, 31) = $322159 x (1 + 0.0938) ≈ $352377
3) For Investor C
at the age of 65 years ( balance )
= $2000 (FIP, 9.38%, 41) = $820620 x (1 + 0.0938) ≈ $897594