Ask Question
BusinessBusiness
3 October, 01:01

Refer to Scenario 13-13. Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. What is Christine's annual opportunity cost of the financial capital that she invested in her business

+1
Answers (1)
  1. 3 October, 01:16
    0
    Christine's annual opportunity cost of the financial capital that she invested in her business is $50

    Explanation:

    Opportunity costs are all those losses which are faced for choosing an alternative like loss of interest income in case of investment in the business.

    In this question, the opportunity cost for Christine is the loss of interest income from the investment in the saving account in case of investment in the business.

    Investment = $5,000

    Interest Income = 1% of Investment = $5,000 x 1% = $50

    Opportunity cost is $50.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Refer to Scenario 13-13. Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What is the one of the best ways for hotels to conserve water? A. using daylight sensors B. using timed faucets C. using keycard-controlled master switches D. using temperature control E. restricting use of the swimming pool
Answers (1)
Denny Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to Unearned Service Revenues.
Answers (1)
A firm is evaluating a project with an initial investment at time 0 of $640,000. The present value of the levered cash flows is $729,400 and the net present value of the project is $157,000.
Answers (1)
Which of the following is an asset account? A. Wages PayableB. Unearned RevenueC. Accounts ReceivableD. Notes Payable
Answers (1)
In a recent annual report, Fourth Wall Inc. (formerly Greencube) disclosed that 61,600,000 shares of common stock have been authorized.
Answers (1)
New Questions in Business
What's it called when you look in the internet for medical symptoms?
Answers (1)
Rob Grier, a friend of yours, has recently purchased a home for $125,000, paying $25,000 down and the remainder financed by a 10.5%, 20-year mortgage, payable at $998.38 per month.
Answers (1)
A company did not receive all the items it was invoiced for; the invoice noted a 2% discount if paid in ten days. the company should:
Answers (1)
What, if anything, should you do to correct the following sentence? He has the ability to affect the outcome, but he's not likely to take that chance. A. Nothing. The sentence is correct as it stands. B. Change affect to effect. C.
Answers (2)
Tom has a life insurance policy with a $1.8 million benefit. If this money was put into an account with a 4.5% interest rate, how much income can his beneficiaries expect in case Freddy dies
Answers (1)
Home » Business » Refer to Scenario 13-13. Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest.
Sign Up Forgot Password?