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2 years ago

why is mutual fund investing a good idea for retirement, but not for your emergency fund or short-term savings?

1 answer:

7 0

Investing your emergency fund into a mutual fund is not a good idea because mutual funds are unpredictable, and you can lose your emergency fund.

<h3>What are mutual-funds?</h3>

Mutual funds are the investment pool, where money is invested by many people ad than in profit, all people gain the profit and in loss people lose their money.

Investors buy shares in the mutual funds and combined called as portfolio.

Thus, Investing your emergency fund into a mutual fund is not a good idea because mutual funds are unpredictable, and you can lose your emergency fund.

Learn more about mutual-funds

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What is a firm's gross profit? A. the difference between sales revenues and cash expenditures associated with those sales B. t

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Answer:

B. The difference between sales revenues and the costs associated with those sales

Explanation:

The amount of profit made by the company after deducting the total costs which have been incurred in the making and the selling of the product is said to be gross profit. The gross profit is calculated by subtracting the amount of revenue and the cost of the goods sold. Fixed cost is not included in the gross profit. It includes only variable costs.

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4 years ago

“Due process” is another phrase for “fairness.” Why should the public show fairness toward criminal defendants?

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Answer:

In the U.S. our justice system and society in general are built on a foundation of due process or fairness. The goal of this foundation is to ensure justice equal for all. To maintain fairness, it is important to show it to all. Being fair to others is a way to protect your own right to due process.

Explanation:

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3 years ago

Gilbert is considering purchasing the Side Steamer 3000, a higher-end steamer, which costs $12,000, and has an estimated useful

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Answer:

Explanation:

initial outlay $12,000 + ($2,900 - $700) = $14,200

depreciable value = $10,800

depreciation per year:

$2,160
$3,456
$2,073.60
$1,244.16
$1,244.16
$622.08

incremental revenues = $2,000 + $1,400 = $3,400

CF year 0 = -$14,200

CF year 1 = [($3,400 - $2,160) x 0.6] + $2,160 = $2,904

CF year 2 = [($3,400 - $3,456) x 0.6] + $3,456 = $3,422.40

CF year 3 = [($3,400 - $2,073.60) x 0.6] + $2,073.60 = $2,869.44

CF year 4 = [($3,400 - $1,244.16) x 0.6] + $1,244.16 = $2,537.66

CF year 5 = [($3,400 - $1,244.16) x 0.6] + $1,244.16 = $2,537.66

CF year 6 = [($3,400 - $622.08) x 0.6] + $622.08 + $1,200 + $2,200 = $5,688.83

WACC = 12%

a) the steamer should not be replaced, since the NPV is negative.

b) Using a financial calculator, NPV = -$14,200 + $13,298.29 = -$901.71

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3 years ago

The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be:

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Answer:

c. Dec. 31Fees Earned750 Rent Revenue175 Income Summary925

Explanation:

The journal entry to record the closing of Fees earned and rent revenue is given below:

On Dec 31

Fees earned $750

Rent revenue $175

To Income summary $925

(Being the revenues and fees earned is closed)

For recording this we debited the fees earned and rent revenue and credited the income summary so that the correct recording and posting could be done

Therefore the total amount of $925 is credited to income summary

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4 years ago

Corruptco is a large machine shop that fabricates metals. Corruptco maximizes profits and shareholder value by polluting the loc

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Answer: a. the narrow view, or invisible hand theory

Explanation:

When it comes to the narrow view theory of corporate social responsibility, companies put one thing above all else, the maximisation of shareholder wealth.

Any activity that would help them do so - legally - is considered fair game even if it leads to adverse effects. Corruptco is therefore adhering to this theory because they are polluting the the local river to maximize shareholder value.

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3 years ago