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3 years ago

1. Should you have a separate checking and saving account?

1 answer:

5 0

Back when interest rates were high, I had just one account. I had a money-market checking account that offered good interest rates and unlimited check writing. But those days are long gone.

I want as high an interest rate as I can get for my savings. In order to get those rates, I am using a money-market savings account. All such accounts I’ve seen restrict the number of transactions I can make in a month. I need to be able to pay bills, no matter how many of them there are — and I never ever want to pay fees for excess transactions!

So I have a separate checking account. It pays less than half the interest rate of my savings account, but I can make as many transactions as I want. The bank offers a bill pay application that I use for most payments, and I can write as many checks as I want to. I can transfer money between the accounts quickly.

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The management of Nebraska Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate

myrzilka [38]

Answer:

The average rate of return of this investment is 8%.

Note: Based on the information provided in the question, the average rate of return of this investment is 8% but it is not included in the option. Kindly confirm this from your teacher.

Explanation:

Note: The data in the question are merged and they therefore first sorted before answering the question as follows:

Year Income from Operations Net Cash Flow

1 $100,000 $180,000

2 40,000 120,000

3 40,000 100,000

4 10,000 90,000

5 10,000 120,000

The explanations to the answer is now given as follows:

Calculation of the average rate of return for this investment

Average rate of return (ARR) is a financial ratio that is used to determine the rate of return that is expected from an asset over its lifetime. ARR is calculated as the total income from the assets divided by the initial investment on the assets.

The average rate of return for this investment can be calculated as follows:

Total income form operations over five years = $100,000 + $40,000 + $40,000 $ $10,000 + $10,000 = $200,000

Average income = Total income form operations over five years / Number of years = $200,000 / 5 = $40,000

Average rate of return for this investment = Average income / Cost of Machine = $40,000 / $490,000 = 0.08, or 8%

Therefore, the average rate of return is 8%.

6 0

4 years ago

Start-ups are usually

makkiz [27]

A startup is a young company that is just beginning to develop

4 0

3 years ago

Read 2 more answers

Swifty Corporation purchased a machine for $66000 on July 1, 2020. The company intends to depreciate it over 8 years using the d

Lostsunrise [7]

Answer:

Depreciation expense= $7,612.5

Explanation:

Giving the following information:

Purchase price= $66,000

Salvage value= $5,100

Useful life= 8 years

First, we need to determine the depreciation expense for the whole year. We will use the following formula:

Annual depreciation= 2*[(book value)/estimated life (years)]

Annual depreciation= 2*[(66,000 - 5,100) / 8]

Annual depreciation= $15,225

For 2020:

Depreciation expense= (15,225/12)*6= $7,612.5

3 0

3 years ago

At the beginning of 2016, robotics inc. acquired a manufacturing facility for $12 million. $9 million of the purchase price was

Serhud [2]

Answer:

$667,826

Explanation:

Straight Line depreciation is a method of depreciation in which the cost of the asset net of residual value is divided over useful life.

As per given data

Cost of building = $9,000,000

Residual Value = $1,000,000

Useful life = 25 years

Depreciation per year = ($9,000,000 - $1,000,000 ) / 25 years = $320,000

Net Book Value at beginning of 2018 = $9,000,000 - $320,000 = $8,680,000

Switched to Double Declining Method

In double declining method the double depreciation is charged on the asset's book value at the beginning of the year. The Depreciation is accelerated in this method.

Depreciation for 2018 = 2 x (Asset's book value at the beginning of the year - Salvage Value ) / Numbers of Useful life remaining

Depreciation for 2018 = 2 x ($8,680,000 - $1,000,000 ) / (25 - 2)

Depreciation for 2018 = $667,826

7 0

3 years ago

Your company will generate $65,000 in annual revenue each year for the next seven years from a new information database. If the

Murrr4er [49]

The Present Value is $335,539.75

This is a form of an annuity. The present value of an ordinary annuity can be computed as follows -

PV = A * 1 - 1 / (1 + r)n / r

where

A = annual revenue or annuity,

r = rate of interest,

n = no. of years

PV = 65000 * 1 - frac 1 / (1+0.0825)^7 / 0.0825 = 335,539.746942

or, Present value = $335,539.75

Also known as Recurring Revenue. Revenue that flows in at regular intervals during the year – typically, on a monthly basis.

Learn more about Recurring Revenue here: brainly.com/question/14317614

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3 0

2 years ago