Opportunity Cost Reports Samples For Students

A well-known saying “There is no such thing as a free lunch” belongs to Milton Friedman, Nobel Peace Prize winner in Economic Sciences (Tucker, 2008, p. 27). This phrase poses a key question whether or not something can be free. “Free lunch” appeared during a period in history when bars and saloons in America started attracting their customers by offering them free lunch (Riley, 2006). Obviously, they sacrificed money for lunch knowing about the trade-off on drinks their customers would order.

It refers to such economic concepts like opportunity cost and scarcity of resources. In addition, it is important to understand that ...

The world is fast changing. Advancement in technology has seen companies make some hard but worthwhile choices so as to remain viable and in business. And the field of prototyping as well is rapidly evolving. According to Bak (2003), new technologies in 3D printing have enabled companies to print massive volumes of complex designs in a short period, an undertaking that used to take a lot of time and labor resources. Every existing and upcoming business is focusing on maximizing profits and minimizing costs. Family businesses, however small, are no exception as well. The current situation at EGCM is ...

Introduction

The success of a given economy in international trade greatly depends on the status of its currency as well as the decisions or rather policies that are put into place as far this issue is concerned. The United Kingdom is one of the countries or rather economies that has been said to be successive in international market, despite of the recent economic crisis that has been experienced worldwide in general and specifically, in America and Europe. The success of UK in the global economy is evident from the gradual increase of the number of exporters in the country. It is a ...

Economics: Michelle and James

Production and consumption in isolation

Potatoes:

200
80

Chicken:

50
40

Opportunity Cost Table

Potatoes:

Michelle

[200/50] = 4

James

[80/40] = 2

Chicken:

Michelle

[50/200] = 0.25

James

[40/80] = 0.5

Michelle’s opportunity costs

The opportunity of Michelle producing potatoes is the number of chicken she forgoes to produce the next sac of potatoes. Therefore, it's the marginal cost of producing a sac of potatoes in terms of chickens. Thus, Michelle’s opportunity cost of producing a sac of potatoes is 0.25 chickens.

The opportunity of Michelle producing chickens is the number of potato sacs she forgoes to produce the next chicken. Therefore, it's the marginal cost of ...

Part I

1. Time value analysis is the concept implemented when there is a necessity to identify future value of one unit of a currency supposed to be received in several years or the amount of money supposed to be received in future from one unit of currency invested today. The basic concept of time value of money analysis is that the value of alternative investments depends on the time when they will be exchanged. Interest rate may not cover inflation rate contributing to the differences between the present and future values of investments (Khan Academy, 2013).
Time value analysis is a tool ...

Relevant cash flows (relevant revenues and cash flows) are those cash flows that differ across different decision alternatives. Drury (2012) observes that relevant cash flows are those cash flows that are:
Incremental cash flows – relevant cash flows represents the incremental revenues or costs of different decision alternatives. The relevant cash flows include the marginal revenues or marginal costs associated with each decision alternative. Cash flows that will remain unchanged are irrelevant cash flows. Therefore, committed costs such as salaries for full time employees are irrelevant cash flows.
Future cash flows – relevant cash flows must be future cash flows. Past ...

Viability Report on JV

There lies a distinguishing characteristic of Multinational Corporation (MNC) in contrast with a collection of independent national firms dealing at arm’s length is, its ability to move money to its affiliates through internal transfer mechanism. In multinational financial system there is transfer of goods, services, technology and capital.
In the interest of facilitating stronger sustainable profitability and growth, decisions on resource allocation in organizations require a systematic, analytical and though approach as well as sound judgement. Project and investment appraisals and capital budgeting which involves assessing the financial feasibility of a report should use Discounted Cash Flow(DCF) analysis as a supporting ...

ABSTRACT

Risks and assumptions analysis play a pivotal role in success of a project. After the identification of all the possible risks, all risks need to be quantified though critically examining the degree of impact the risks would have one the outcome of the project and then prioritized. Economic analysis could be used as one of the tools for assessing and managing risks. The economic analysis of projects is carried out before actually investing in it and is conducted throughout the project analysis when necessary, that is, design and preparation phase, implementation phase and post evaluation phase of the project ...

Net present value

NPV is gotten by subtracting cash outflows from the sum cash inflows from the project investment. To get current values, a discounted rate used which is the rate of return or the opportunity cost of capital. The opportunity cost of capital is the rate of return that an investor could earn if the money would have invested in financial assets of equal risk (Gollier, 2009). It’s therefore, the return that an investor would expect to receive. It’s vital in capital budgeting because of the determination of the expected profits from the projects to be invested if approved ...

- http://news.xinhuanet.com/english/china/2014-11/27/c_133818265.htm

Alternative story:

One-child policy -----the Chinese characteristics policy
Since one-child policy introduced in 1979, it underwent a long time to develop and improve. The aim of this policy is reducing population growth rate in China. The population of China boomed between 1949 and 1979. Now, China is the most populated country in the world. However, One-child policy was legislated in 2001 regularly. And in 2002, begin to implement.
The main content and purpose of family planning is: advocate late marriage, childbearing, fewer children, gifted students, and there are plans to control the population. And in earlier 20century, it ...

Introduction.

The European emissions trading scheme (EU ETS) was launched in 2005 to curtail adverse climatic changes in the Europe. Today, the EU ETS is the largest emissions trading scheme in the world. Its foundation and motivation was based on the EU climate policy of reducing the greenhouse gas emissions emitted from human activities that pose dangerous and harmful climatic changes to the world. It currently covers 1100 factory plants and other high energy plants in all EU member states. The EU ETS was the first cap-and –trade allowances system for carbon four oxide emissions alongside other greenhouse gases at ...

Introduction

BHP is a multinational company in Australia which deals with mining and petroleum. It has its headquarters at Melbourne, Australia and it also has a major management office in London, United Kingdom. According to the revenue measured by 2011, it was the largest mining company in the world. And as per February 2011, it was the third-largest company according to the market capitalization.
As the history goes, BHP Billiton Company was formed in the year 2001 when two companies formed a merger. The two companies were; Broken Hill Proprietary Company Limited (BHP) from Australia and the Anglo–Dutch Billiton plc. Since ...