| |T Two | | | | | |Equal Opportunity |2 | | |And |
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such as a private vehicle. This directly relates to an economic principle referred to as Opportunity Cost‚ which explains what must be given up as the result of a choice. It is more economic for some to forego ownership of a private vehicle than to go without food‚ paying mortgage or paying bills. Another economic principle that can be considered is the demand equation which is also linked to opportunity cost. The demand equation reflects that demand can be influenced by an individual’s income and
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Risks: • Individual debt from College/Graduate school would be added onto by the purchase of Icedelights franchise for Florida • Time commitment that might take all three individuals away from completing their MBA’s at Harvard • Additional opportunity costs of missing out on a almost-guaranteed job with a good company‚ salary‚ and title - post-graduation • Icedelights is more expensive for a new and unproven franchise • Giving up more than 25% percent of the company just to get investors interested
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Chapter #19‚ Quizz Quizz‚ Chapter 19 1.Calculate the weighted-average cost of capital (WACC) for Federated Junkyards of America‚ using the following information: • Debt: $75‚000‚000 book value outstanding. The debt is trading at 90 percent of par. The yield to maturity is 9 percent. • Equity: 2‚500‚000 shares selling at $42 per share. Assume the expected rate of return on Federated’s stock is 18 percent. • Taxes: Federated’s marginal tax rate is Tc = .35 What are the key assumptions
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Conger article‚ I realized that instead of being vague and forceful in my verbal revenue argument I should have more effectively framed my request through presenting revenue data for each potential opportunity. I would have provided this data as a means by which my co-worker could see the revenue opportunity cost of him attending vs. not attending. Secondly‚ I realized that despite us seeing one another in the office I have never taken time in the past to build a relationship with my co-worker. He likely
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Journal of Cleaner Production 11 (2003) 667–676 www.cleanerproduction.net The use of Environmental Management Accounting (EMA) for identifying environmental costs Christine Jasch ∗ ¨ Institute for Environmental Management and Economics‚ IOW‚ Rechte Wienzeile 1915‚ A-1040 Vienna‚ Austria Received 28 August 2001; accepted 27 June 2002 Abstract The Expert Working Group on “Improving the Role of Government in the Promotion of Environmental Management Accounting (EMA)” was set up by the
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CNN-Money assignment Presented to Prof. Dr. Iman Zaky By Dr. Adham ABulnour Article: Fiat 500L: A really big tiny car The new larger Fiat is still very small but somehow manages to have a giant-sized interior. http://money.cnn.com/gallery/autos/2013/08/28/fiat-500l/index.html?iid=HP_Highlight Interpretation Microscale or Macroscale economy? The article deals with the microscale economics of the Fiat Corporation private cars industry with a special focus on the Fiat 500 series. Macroscale
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whether to take a vacation. Most of the costs of the vacation (airfare‚ hotel‚ and forgone wages) are measured in dollars‚ but the benefits of the vacation are psychological. How can you compare the benefits to the costs? 3. You were planning to spend Saturday working at your part-time job‚ but a friend asks you to go skiing. What is the true cost of going skiing? Now suppose you had been planning to spend the day studying at the library. What is the cost of going skiing in this case? Explain.
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FOE_C02.qxd 1/15/07 14:45 Page 16 »2 The production possibility frontier (curve): the PPF or PPC The starting point in our economic analysis is to consider what an economy can produce. As consumers we may want many things‚ but there is a limit to what our economy can actually produce. This can be analysed using the production possibility frontier (PPF). In this unit we examine the factors that determine how much an economy can produce and the implications of different output decisions
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deals primarily with the concept of a. scarcity. b. money. c. poverty. d. banking. 2. The adage‚ "There is no such thing as a free lunch‚" means a. even people on welfare have to pay for food. b. the cost of living is always increasing. c. people face tradeoffs. d. all costs are included in the price of a product. 3. Government policies resulting in reduced efficiency include (i) the welfare system (ii) unemployment insurance (iii) progressive income tax a. (i) only
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