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You purchased a brand new laptop for an online course you are taking. The online course tuition costs $500, you paid off the tuition with cash. For the laptop, you paid $1,000 (cash) plus an additional $100 (cash) of insurance if the laptop needed repairs within 1 year from the purchase date. One month into the brand new laptop you accidentally spilled hot coffee on your laptop. The laptop would not turn on and it requires service or repair. The cost of repair is completely covered by insurance. However, to complete the online coursework you purchased a used laptop on eBay for $500. You paid for the used laptop with a credit card on which you revolve the balance with an interest rate of 10% annually. You estimate the resale value of the used laptop is $250. Make no other assumptions about anything else.
What is the opportunity cost of taking that online course? Please help me solve this problem and show work as you work through the problem.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
This report is specific for a core understanding for Financial Accounting and its relevant factors.
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