Your aunt is thinking about opening a hardware store. She estimates that it would cost $300,000 per year to rent the location and buy the stock. In addition, she would have to quit her $45,000 per year job as an accountant. Suppose your aunt thought she could sell $320,000 worth of merchandise in a year. Which statement is true? The opportunity cost of running the hardware store is $300,000 and she should open the store since her economic profit would be
The opportunity cost of running the hardware store is $345,000 and she should open the store since her accounting profit would be positive.
The opportunity cost of running the hardware store is $300,000 and she should not open the store since her accounting profit would be negative.
The opportunity cost of running the hardware store is $345,000 and she should not open the store since her economic profit would be negative
None of above
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 12:10, Marcus2935
Gwen, a manager at exude apparels inc., received a message from a customer requesting a replacement for a purchased pair of shoes. exude apparels has a clearly stated no-return policy. gwen responded to the customer denying the request in a tactful and clear manner. despite this, the customer submitted a second request. in this scenario, which of the following is an appropriate response to the second request?
Answers: 2
Business, 22.06.2019 15:30, TerronRice
In 2015, lori assigned a paid-up whole life insurance policy to an irrevocable life insurance trust (ilit) for the benefit of her three children. the ilit contained a crummey provision for the benefit of each child. at the time of the transfer, the whole life insurance policy was valued at $200,000, and since lori had not made any other taxable gifts during her lifetime, she did not owe any gift tax. lori died in 2016, and the face value of the whole life insurance policy of $2,000,000 was paid to the ilit. regarding this transfer, how much is included in lori’s gross estate at her death?
Answers: 1
Business, 22.06.2019 20:10, janayflowers042
Russell's is considering purchasing $697,400 of equipment for a four-year project. the equipment falls in the five-year macrs class with annual percentages of .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6, respectively. at the end of the project the equipment can be sold for an estimated $135,000. the required return is 13.2 percent and the tax rate is 23 percent. what is the amount of the aftertax salvage value of the equipment assuming no bonus depreciation is taken
Answers: 2
You know the right answer?
Your aunt is thinking about opening a hardware store. She estimates that it would cost $300,000 per...
Questions in other subjects:
Biology, 23.10.2019 04:30
Mathematics, 23.10.2019 04:30
Mathematics, 23.10.2019 04:30
