Answer: $52,840
Explanation:
The opportunity cost are the benefits he will give up to pursue his current venture of landscaping.
= Salary from working for uncle + Interest on the Savings to be used in business + Difference in market value if he waits till the end of the year
= 50,000 + (7% * 12,000) + (12,000 - 10,000)
= $52,840
Answer:
Inferior good
Explanation:
Inferior goods are those type or the kind of goods whose demand falls or decline when the income of the person or customer or individual rises or increases.
In short, the demand of the inferior goods is related inversely to the customer or person income.
So, in this case, the person bought 10 frozen pizzas per month, but when the person start earning, then the person would not buy the frozen pizzas. The frozen pizza will be inferior good for the person as the income of the person will rise.
Answer:
Decide the issuance of cost of the bonds:
The issuance cost of bonds is the sum the obliged substance raised through the issue of legally binding proclamation called bonds. The cost of securities relies on the assumed worth, time frame, the coupon rate and the market rate.
Coming up next are three general standards regarding bonds issue cost:
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On the off chance that the coupon pace of the security is equivalent to the market loan fee, at that point the security is said to be given at standard.
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On the off chance that the coupon pace of the security is more prominent than the market financing cost, at that point the security is said to be given at premium.
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On the off chance that the coupon pace of the security is lower than the market loan cost, at that point the security is said to be given at rebate.
In the current case, both the coupon rate and the market premium are 8% and are equivalent. Thus, the issue cost of bonds is equivalent to the standard worth. That is $600,000.
