Answer: The average annual arithmetic return is 3.75%.
Explanation:
Year 1 = 10%
Year 2 = 15%
Year 3 = 15%
Year 4 = -25%
Total return = 15%
The arithmetic average annual return is calculated as (Year 1 return + Year 2 return + Year 3 return + Year 4 return) / 4 = 15% / 4 = 3.75%.
The opportunity cost amounts to $532,000. This represents the cost of the most preferable alternative that was not selected. In this case, rejecting the investment project meant foregoing the potential return of $532,000.
Answer:
The price elasticity of demand for home heating oil is -0.36.
Explanation:
To find the price elasticity of demand for home heating oil, we can utilize the formula:
Elasticity of demand = (dQ/dPhho)*(P/Q)
Based on the information provided:
demand for home heating oil in Connecticut = Q = 20 – 2 Phho + 0.5 Png – TEMP
price of home heating oil = $1.20
price of natural gas = $2.00
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Q = 20 – 2*1.2 + 0.5*2 – 12
Q = 6.6
Hence, we calculate price elasticity of demand as follows: (-2)*(1.2/6.6)
Thus, price elasticity of demand = -0.36.
The price elasticity of demand for home heating oil is -0.36.
</psubstituting>
Karen dividió su comisión a partes iguales con su corredor, por lo que ella recibe:
Comisión de Karen = $3,522.75 × 0.5 = $1,761.375
El corredor de Karen se llevó el 55 % del total de la comisión, por lo que Karen obtiene solo el 45 % del total. Entonces, la comisión total debe ser:
Comisión total = $1,761.375 ÷ 0.45 = $3,914.17
Con una tasa del 7 %, el precio de venta del inmueble es:
Precio de venta = $3,914.17 ÷ 0.07
<span>Precio de venta = $55,917</span>