Compare the Opportunity Cost of Buying a New Car with the Opportunity Cost of Going to...
Compare the Opportunity Cost of Buying a New Car with
the Opportunity Cost of Going to College? How would you relate one
to the other or compare them analyze them separately, assuming that
they are not mutually exclusive.
Homework Answers
Opportunity cost of buying car is always high because of its investment and lower reselling price.
Whereas an investment as opportunity cost in education is always low because if benefits it generates which can be exponential. Benefits thus are tangible and intangible and returns compound year on year through education. Moreover an education degree does not hold any depreciation.
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Compare the Opportunity Cost of Buying a New Car with
the Opportunity Cost of Going to...
The concept of opportunity cost is an important one in economics. It is essential to understand the distinction betwee...
The concept of opportunity cost is an important one in economics. It is essential to understand the distinction between explicit and implicit costs. For this assignment, consider an event at work that you company is considering doing, such as a new product, adding more employees, etc. their opportunity cost of going to school is. Include all implicit and explicit costs of this venture. In addition, analyze the value of this project and how the costs will be short run and...
The concept of opportunity cost is an important one in economics. It is essential to understand the distinction betwee...
The concept of opportunity cost is an important one in economics. It is essential to understand the distinction between explicit and implicit costs. For this assignment, consider an event at work that you company is considering doing, such as a new product, adding more employees, etc. their opportunity cost of going to school is. Include all implicit and explicit costs of this venture. In addition, analyze the value of this project and how the costs will be short run and...
When you purchase a car, you may consider buying a brand-new car or a used one....
When you purchase a car, you may consider buying a brand-new car or a used one. A fundamental tradeoff in this case is whether you pay repair bills (uncertain at the time you buy the car) or make loan payments that are certain. Consider two cars, a new one that costs $15,000 and a used one with 75,000 miles for $5,500. Let us assume that your current car’ s value and your available cash amount to $5,500, so you could...
Trixie is considering buying a new car at a cost of $17,811. She is planning to...
Trixie is considering buying a new car at a cost of $17,811. She is planning to keep the car for five years and is hoping the car will sell for $4,069 at the end of year 5. She estimates that insurance, fees, maintenance, and gas will be $1,636 in year 1 and will gradually increase every year by $194. What is the equivalent uniform annual worth (EUAW) of this car at a 2% interest rate? Enter your answer as 1234...
microenconomics Opportunity Costs- Graded The concept of Opportunity Cost is one of the most misunderstood concepts...
microenconomics
Opportunity Costs- Graded The concept of Opportunity Cost is one of the most misunderstood concepts in Microeconomics. Therefore, an extra effort in the literature survey is recommended prior to articulating your answers for this week's coursework. Hint: opportunity cost is NOT an outcome of a decision. Let's discuss the cost of attending college. Some of the more common expenses that come to mind include the explicit costs of tuition, books, and room and board. But what about the implicit...
4. A college foundation raises funds by selling 600 raffle tickets for a new car worth...
4. A college foundation raises funds by selling 600 raffle tickets for a new car worth $ 41, 000 at $140 each. (a) Find the expected net winnings of a person buying one of the tickets. (b) Find the total profit for the foundation, assuming they had to purchase the car. (c) Find the total profit for the foundation, assuming the car was donated.
Assume that you are buying a car and you are deciding between three cars: one new...
Assume that you are buying a car and you are deciding between three cars: one new car using a lease, another that is a financed purchase, and finally, a pre-owned vehicle. Describe how you would approach choosing between the different vehicles and consider how your process would be similar or different from the project selection process. Include in your post answers to the following questions: - Could the process used for choosing between cars be applied to selecting between projects...
The opportunity cost of going to university is Select one: a. the sum of all the...
The opportunity cost of going to university is Select one: a. the sum of all the money a student spends on food, clothing, books, transportation, tuition, lodging and other expenses b. the value of the best opportunity a student gives up to attend university c. zero for students who are fortunate enough to have all of their university expenses paid by someone else d. zero, since a university education will allow a student to earn a larger income after graduation
Question 2 A. In discounting the cash flows of a project, the opportunity cost of capital...
Question 2 A. In discounting the cash flows of a project, the opportunity cost of capital is of significant importance. How this interest rate is selected and what may be the implications of selecting either a higher or a lower one than the appropriate? Describe the process for a company operating under uncertainty, in comparing and choosing between two mutually exclusive investment projects B. C. Describe the Degree of Operational Leverage, as it is important in company profitability. However, could...
Question 1: You are buying a new $40,000 car. You must put down 10% and then...
Question 1: You are buying a new $40,000 car. You must put down 10% and then finance the remainder for 5 years @ 8%. What is your monthly payment? A. $811.06 B. $849.88 C. $729.95 D. $770.50 Question 2: Refer to the previous question. If you wanted to pay off the car immediately after you made the 43rd payment, how much would you have to pay the finance company? A. $6,868.50 B. $11,695.02 C. $9,767.42 D. Insufficient information to determine
microenconomics
Opportunity Costs- Graded The concept of Opportunity Cost is one of the most misunderstood concepts in Microeconomics. Therefore, an extra effort in the literature survey is recommended prior to articulating your answers for this week's coursework. Hint: opportunity cost is NOT an outcome of a decision. Let's discuss the cost of attending college. Some of the more common expenses that come to mind include the explicit costs of tuition, books, and room and board. But what about the implicit...
The opportunity cost of going to university is Select one: a. the sum of all the money a student spends on food, clothing, books, transportation, tuition, lodging and other expenses b. the value of the best opportunity a student gives up to attend university c. zero for students who are fortunate enough to have all of their university expenses paid by someone else d. zero, since a university education will allow a student to earn a larger income after graduation
Question 2 A. In discounting the cash flows of a project, the opportunity cost of capital is of significant importance. How this interest rate is selected and what may be the implications of selecting either a higher or a lower one than the appropriate? Describe the process for a company operating under uncertainty, in comparing and choosing between two mutually exclusive investment projects B. C. Describe the Degree of Operational Leverage, as it is important in company profitability. However, could...
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