What is a sunk cost? Why is it not considered a relevant cost in differential analysis? Explain in your own words, feel free to use examples, metaphors, etc.

In detail please! Thank you.

Crono Clocks is looking at a Clock Machine with an installed cost of $900,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the Clock Machine can be scrapped for $111,000. The clock system will save the firm $299,000 per year in pretax operating costs, and the machine requires an initial investment in net working capital of $67,000.

If the tax rate is 34 percent and the discount rate is 8 percent, what is the NPV of this project? (Round answer to two decimal places)

If the cost object is a manufactured product, what are the three major cost categories to accumulate? Explain each.

How would you answer these questions with this topic:

The opportunity cost is the cost of next best alternative use. It is calculated in terms of other good. On the other hand, the sunk cost is the money spent on the goods which cannot be recovered i.e payment for rent, advertisement expenses etc.

Question - 4: Statement: The gap between average cost curve and average variable cost curve increases as production increases.

Argument:

I. Yes, the law of variable proportion applies.

II. No, It is because the average fixed cost decreases as the production increases.

Option: I. Argument I is correct.

II. Argument II is correct.

III. Both arguments are correct.

IV. Neither argument is correct.

Question -5: Statement: The average variable cost is minimum when marginal cost is equal to it.

Argument:

I. Yes, it is because the marginal cost curve cuts the average cost at its minimum point.

II. Yes, it is because the marginal cost is ratio of change in total variable cost and change in output.

Option:

I. Argument I is correct.

II. Argument II is correct.

III. Both arguments are correct.

IV. Neither argument is correct.

An asset with a first cost of $21,500 has an annual operating cost of $11,800 and a $4200 salvage value after its 6-year life. If the project will be needed for 10 years, what would the salvage value of the 4-year-old asset have to be for the annual worth to be the same as it is for one life cycle of the asset? Use an interest rate of 11% per year. Draw the cash flow diagram. Always use factor notation.

A) If the cost of debt is typically significantly less than the cost of equity (especially on an after-tax basis), what do you think about the idea of capitalizing (or funding) a business entirely with debt? Explain your reasoning in 200-500 words.

B) If you were a venture capitalist considering providing funding to a cash-constrained firm, what criteria could you use to assess the accuracy of their cash flow forecasts and the adequacy of their requested cash injection? Explain in 200-500 words.

The following sets of data represent the cost of living index for utilities and the cost of living index for transportation for 46 randomly chosen metropolitan areas in the United States.

utilities=c(90,84,85,106,83,101,89,125,105, 118,133,104,84,80,77,90,92,90, 106,95,110,112,105,93,119,99,109, 109,113,90,121,120,85,91,91,97, 95,115,99,86,88,106,80,108,90,87)

transportation=c(100,91,103,103,109,109,94,114,113, 120,130,117,109,107,104,104,113,101, 96,109,103,107,103,102,101,86,94, 88,100,104,119,116,104,121,108,86, 100,83,88,103,94,125,115,100,96,127)

Include your R commands and output for each part of the problem

1. Create a single table summarizing the mean, median, mode, standard deviation, variance and 5-number summary for each data set.
2. Create a boxplot for cost of living index for utilities.
3. Create a boxplot for the cost of living index for transportation.
4. Write a short paragraph comparing the two data sets and include lots of details.

The Cost of Natural Resources The high cost of oil in the Global South continues to have a detrimental effect on its population. What are the primary natural resources that are used in your state? If this natural resource became unavailable, how would that affect the state’s economy? How does the harvesting or collecting of this natural resource affect the natural environment?

Review the posts of your classmates and respond to at least one other post discussing how the natural resource they chose to write about would influence your community.

Cost recovery is the systematic allocation of cost to an expense. Discuss the three types of cost recovery and the related assets they apply to.