Jerome's current job pays $X/yr and provides $Y in benefits like insurance. He can start a business using the$Z he has in the bank earning 1.4% interest. The start-up would have $A in revenue and cost $B/yr for rent,payroll, and materials. What would Jerome's economic profit be if he started this business?A-B-[(X + Y)+(Zx 1.4%)(X+)+(Zx 1.4%)A-BA-B (X + Y)

Approach to solving the question: Detailed explanation: The option that is true for Jerome's…

Answered: Jerome's current job pays $X/yr and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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You are the CEO of a company. You have an opportunity to undertake the following project: pay $1,000 today and receive $1,300 a year from now. If the interest rate is 30%, the net gain of the project (cost minus benefit) is: A) $440. B) $200. C) $166. D) $0.
The Rosebud Motel is a must-stay for any road-tripper or weary traveler. The motel fils each of its 24 rooms for 200 nights each during the year. Annual fixed costs total $160,000. The variable cost of one night's stay is $100. The motel owners expect a 50% return on the company's $500,000 of assets each year. The Rosebud Motel is currently the only place to stay for 50 miles. What should Rosebud's cost-plus price be if sales volume and costs are expected to stay consistent? OA. $133.33 OB. $185.42 OC. $2,150.00 OD. $152.08 OE. The Rosebud Motel would not set its price as it is a price-taker in this market.
The value of goods or service sold by business during a particular period of time is know as A-profit B- turnover C-cash flow D-income statement
QUESTION FOUR (a There are disputes sometimes even after the goods have been delivered. Explain five ways ofhow the goods can successfully delivered.b Explain the five remedies of a breached contract. c Last year Katie bought a car from Oliver for ZMK35,000 to be paid in two instalments ofZMK1,750. Katie did not pay the second instalment when it was due. She never disputed thatshe owed Oliver this money.Oliver felt sorry for Katie, who lost her job not long after buying his car. He told her that ifshe paid him the half of what she owed him (ZMK8,750) by the following Wednesday, hewould let her off with the rest.Katie paid him the ZMK8,750 on the following Tuesday. She also gave him a bottle of wine“in consideration of his kindness”.On the Friday Katie was notified that she had been successful in one of her job applicationsand would be starting work at a much better salary than her old job on the First of the Month.Oliver has heard about Katie’s new job and realizes that she is likely…
ЕОС 13.5B Morgan took $400 000 out of their savings account to start an ice cream stand. The savings account paid 5% interest. In the first year, Morgan sold 12,000 batches of ice cream at a price of $3 each, and incurred costs of $12,000 which involved outlays of money. What was Morgan's economic profit in the first year?
Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.
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When comparing a gross lease to a NNN lease, some of the key differences being lower rent for the tenant at the risk of paying any additional cost out of pocket such as repairs. This would normally be the responsibility of the landlord as with a gross lease. Although the tenant has more control, this also means more risk for them and work of upkeep. This makes a NNN more beneficial for a landlord, and may explain why it’s more common on commercial properties. Residential tenants tend to give gross leases in case any expenses arise the situation will be covered without extra cost to the tenant. This is a discussion from one of my classmates I'm supposed to respond to their post it's only a discussion
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A businessman needs P50,000 for his operations. One financial institution is willing to lend him the money for one year at 12.5% discount rate. Another lender is charging 14% with principal and interest payable at the end of one year. A third financier is willing to lend him P50,000 payable in 12 equal minthly installments of P4,600. Which offer is the best for him? Validate your answer.(kindly give the given, complete and detailed solution. Thank you)

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