Solution-Total accounting cost of the security deposit

Total accounting cost of the security deposit

Assignment Help Basic Computer Science

Reference no: EM131220472

1. Suppose you sign a one-year lease to rent an apartment. In order to move into the apartment, you have to pay a $500 security deposit. The deposit will be fully refunded to you in one year's time if there is no damage to the apartment. Suppose that if you were to invest the $500, the best return you could get over 12 months is 10%. For all parts of question 1, there is no need to convert amounts to present value. We will only consider values at the end of 12 months.

a. What is the total accounting cost of the security deposit over a 12 month time horizon?

b. What is the total economic cost of the security deposit over a 12 month time horizon?

c. Once you have signed the lease, what part of the economic cost of the security deposit is an avoidable cost?

d. Once you have signed the lease, what part of the economic cost of the security deposit is sunk?

Reference no: EM131220472

Questions Cloud

Seeking damages for breach of contract to sell tennis raquet : John sues ivan in a state court, seeking damages for breach of contract to sell a tennis raquet. the trial court finds for ivan. john announces that he will appeal 'all the way to the supreme court of the united states, if necessary, to change the de..

Economic point of view towing a car illegally : Explain why from an economic point of view towing a car illegally parked rather than just ticketing it provides a better incentive (for both rich and low income individuals) not to break the law.

Recently conducted least-squares regression analysis : Booster, Inc. recently conducted a least-squares regression analysis to predict selling expenses. The company has constructed the following regression equation: Y = 329,000 + 7.80X. Which of the following statements is false if the primary cost drive..

Calculate the expected return and variance of portfolios : Calculate the expected return and variance of portfolios invested in T-bills and the S&P 500 index with weights as follows:

Total accounting cost of the security deposit : a. What is the total accounting cost of the security deposit over a 12 month time horizon? b. What is the total economic cost of the security deposit over a 12 month time horizon? c. Once you have signed the lease, what part of the economic cost of ..

Explore the upside of increasing investments : In a slow-growth economy, marketers must explore the upside of increasing investments, get closer to customers, review budget allocations, put forth the most compelling value proposition, and fine-tune brand and product offerings.

Social security privatization : Social Security Privatization Please research the topic of social security and the problems that are predicted for this government program in the future. In APA format in style in a narrative, answer the following questions concerning this article : ..

Prepare an annual operating budget for qwikshare : Prepare an annual operating budget for QwikShare for FY 2012. Prepare a semiannual cash budget showing first half of the year, the second half of the year, and the annual total in three side-by-side columns for QwikShare for FY 2012.

Npv of the investment for james : Fred is thinking about borrowing 10,000 from James. He promises James cash flows of $5000 for the next three years. If James cost of capital is 10 percent, what is the NPV of the investment for James?

User Account

All Pages

Total accounting cost of the security deposit

Reference no: EM131220472

Reference no: EM131220472

Questions Cloud

Reviews

Write a Review

Basic Computer Science Questions & Answers

Identifies the cost of computer

Input devices

Cores on computer systems

Prepare an annual budget in an excel spreadsheet

Write a research paper in relation to a software design

Describe the forest, domain, ou, and trust configuration

Construct a truth table for the boolean expression

Evaluate the cost of materials

The marie simulator

What is the main advantage of using master pages

Describe the three fundamental models of distributed systems

Distinguish between caching and buffering

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT