Ill give a lot of points dominique is thinking about buying a house for $286,000. the table below shows the projected value of two different houses for three years. number of years 1 2 3 house 1 (value in dollars) 294,580 303,417.40 312,519.92 house 2 (value in dollars) 295,000 304,000 313,000 part a: what type of function, linear or exponential, can be used to describe the value of each of the houses after a fixed number of years? explain your answer. (2 points) part b: write one function for each house to describe the value of the house f(x), in dollars, after x years. (4 points) part c: dominique wants to purchase a house that would have the greatest value in 25 years. will there be any significant difference in the value of either house after 25 years? explain your answer, and show the value of each house after 25 years. (4 points)
A) the first house is exponential, because the increase of value changes with each year
for the second house the change is always +9,000 so it's linear
insert a=294,580/b into II:
-> calculate a
so house1: f(x)=286000*1,03^x
difference is always 9000=m
-> calculate d with I
so in 25 years house1 would have a significantly higher value (87820.48)
Read more on -
To convert cm to metres you will need to divide it by 100.
So, 86,000/ 100 which is equal to 860m
Then, to convert it to km, you need to divide your answer by 1000
So, 860m / 1000 is equal to 0.86km
Thus the answer is 0.86km
Hope this helped
1. The wages and utility bills that Darnell pays.
286,000 explicit cost (accounting)
2. The rental income Darnell could receive if he chose to rent out his showroom.
3,000 x 12 months = 36,000 implicit cost (economic)
3. The salary Darnell could earn if he worked as a financial advisor.
20,000 implicit cost (economic)
4. The wholesale cost for the guitars that Darnell pays the manufacturer.
704,000 explicit cost (accounting)
The explicit cost are those which occurs and are represented in the accounting.
While the implicit cost represent the opportunity cost which is the best alternative rejected for taking the current course of action. They are considered for the economic profit
Explicit cost :
The wholesale cost for the pianos that Brian pays the manufacturer
The wages and utility bills that Brian pays
The salary Brian could earn if he worked as an accountant
The rental income Brian could receive if he chose to rent out his showroom
Accounting profit = $14,000
Economic profit = $-9,000
He should stop selling painos. He should work as an accountant
Explicit cost is total actual cost incurred in running a business.
Implicit cost is the opportunity cost of running the piano business. It is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Accounting profit = Total revenue - Total explicit cost
Total revenue = $704,000
Total explicit cost = $404,000 + $286,000 = $690,000
Accounting profit = $704,000 - $690,000 = $14,000
Economic profit is accounting profit less implicit cost or opportunity cost.
Economic profit = Accounting profit - Opportunity cost
Opportunity cost = $20,000 + $3,000 = $23,000
Economic profit = $14,000 - $23,000 = $-9,000
He should work as an accountant instead since his economic profit is negative. He would earn more working as an accountant than selling pianos
I hope my answer helps you.
Explicit costs are actual costs which Yakov must make while implicit costs are opposite of explicit costs, Implicit costs are opportunity costs.
Grouping them, we have the following;
•The wages and utility bills that Yakov pays. => Explicit costs
•The salary Yakov could earn if he worked as a paralegal.=>Implicit Costs
•The wholesale cost for the pianos that Yakov pays the manufacturer. => Explicit costs
•The rental income Yakov could receive if he chose to rent out his showroom =>Implicit Costs
2) Yakov's accounting and economic profit of his piano business.
Acct Profit Economic Profit
$14,000. -$9,000 (loss)
•Yakov's accounting profit will be his revenue - explicit costs.
Therefore accounting profit=
$704,000 - ($404,000 - $286,000) = $14,000
• Yakov's economic profit will be (accounting profit - (rent + forgone salary)
Therefore, accounting profit =
$14,000 - ($3,000+$20,000) = -$9,000
house a exponential and house 2 linear
What is the enterprise value-EBITDA multiple for this company?
The ratio of EV/EBITDA is used to compare the entire value of a business with the amount of EBITDA it earns on an annual basis. This ratio tells investors how many times EBITDA they have to pay, were they to acquire the entire business.
EV = market capitalization + preferred shares + minority interest + debt - total cash
EBIT = EBITDA - Depreciation
Yakov's explicit costs are the monetary costs that he pays while running his business:
Payment to manufacturer: $404,000
Wages and utility bills: $286,000
Total explicit costs: $690,000
Yakov's implicit costs are his opportunity costs, in other words, the things he gives up in order to run his business:
Rent he would get for his showroom: $3,000
Wage he would get as an accountant: $20,000
Total implicit costs: $23,000
Yakov's accounting profit is equal to revenue minus total explicit costs:
Accounting profit = $704,000 - $690,000
Yakov's economic profit is equal to revenue minus total costs (the sum of implic costs and explicit costs)
Economic profit = $704,000 - $713,000
Despite the fact that Yakov is not earning an economic profit selling boats, as an accountant, he would give up on the $704,000 that he is been making from selling boats. For that reason, he should keep the boat selling business.
im not for sure this is the right answer but the answer is 876,160 if i did get it right hope it
the houses are the both different prices and you got to add the the first two top numbers on the graphs and then you have to look two numbers and ad them up together and get your answer and thats you fuction