The payback period for the investment is 4 years.
<h3>What is the payback period?</h3>
The payback period is a capital budgeting method used to determine the profitability of an investment. It determines the number of years it would take to recover the amount invested in a project from its cumulative cash flows.
payback period = amount invested / cash inflow
$100,000 / $25,000 = 4 years
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A mutual fund can in fact be an index fund. However, the vast majority of mutual funds aren't similar to index funds. Most mutual funds have an objective that is different than that of an index fund. Most mutual funds do not rebalance as often as an index fund. A mutual fund often is more diversified than a pure index fund.
Answer:
A
Explanation:
the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = interest rate
g = growth rate
Interest rate used is usually nominal, thus, it increases with inflation rate
We can see that the interest rate is an inverse function of the value, thus when inflation increases, interest rate increases and price declines
Example
d1 = 5
r = 10%
g = 5%
5/ (0.1 - 0,05) = 100
when interest rate increases to 20% as a result of inflation, value becomes
5 / 0.2 - 0.05 = 33.33
value decreased with increase in inflation
Answer:
A. $96
B. $228
C. $42
Explanation:
A. Calculation to determine the Amount of SUTA tax the company must pay to Nebraska on Porter's wages
SUTA tax =$3,000 x 3.2%
SUTA tax = $96
Therefore the Amount of SUTA tax the company must pay to Nebraska on Porter's wages is $96
B. Calculation to determine the Amount of sUTA tax the company must pay to Michiganion Porter's wages
SUTA tax =($9,000 - $3,000 )x3.8%
SUTA tax =$6,000 x 3.8%
SUTA tax = $228
Therefore the Amount of SUTA tax the company must pay to Nebraska on Porter's wages is $228
C. Calculation to determine the Amount of the net FUTA tax on Porters wages
Net FUTA tax=$7,000 limit) x 0.6%
Net FUTA tax = $42
Therefore the Amount of SUTA tax the company must pay to Nebraska on Porter's wages is $42
A bank reconciliation is a(n): Internal report prepared to compare the company's cash records with the bank statement report.
Bank reconciliation is the way in which the bank balance is compare with cash balance in order to detect and rectified any discrepancies or error.
Important of Bank reconciliation includes:
• It enables company's or organizations to know the actual position of their bank balanc
•It help to detect errors
•It help to detect fraud
•It help to prevent fraud
•It help to prevent embezzlement of money.
•It help to verify the accuracy of both the bank balance and the cash balance.
Inconclusion A bank reconciliation is a(n): Internal report prepared to compare the company's cash records with the bank statement report.
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