Answer:
A. True
Explanation:
Internal rate of return abbreviated as IRR, is a capital budgeting technique used to evaluate the profitability of a potential project or an investment. In calculating the IRR, the net present value of the project's cash inflows is set at zero. Getting the actual value of the IRR is through trial and error, or specially programmed software.
IRR shows the growth rate a project or an investment is expected to generate. The higher the value, the better. As a rule, only projects whose IRR is greater than the minimum required rate of return should be accepted. The required rate of return is the same as the cost of capital for the project.
Answer:
$222,450
Explanation:
Computation of annual income statement for Kvass Inc. is shown below
Sales revenue
$4,887,000
Less:
Selling and admn expenses
($1,052,000)
Other expenses
($249,300)
Advertising and promotion expenses
($553,350)
Salaries and wages expenses
($2,527,800)
Income tax expenses
($167,350)
Interest expense
($114,750)
Net income
$222,450
Answer:
$500 gain and $185 tax
Explanation:
Sale of share = No. of NQOs × No. of shares × Selling price per share
= 10 × 10 × $20
= $2,000
Basis = No. of NQOs × No. of shares × share price @$15
= 10 × 10 × $15
= $1,500
Gain realised = Sale of share - Basis
= $2,000 - $1,500
= $500
The tax is calculated as follows:
= Gain realised × marginal tax rate
= $500 × 37%
= $185
Answer:
The correct answer is: black market for apartments whereby higher rents are obtained through various other charges.
Explanation:
A price ceiling refers to an upper limit fixed for the price of a product or service. A rent ceiling means that rent cannot be charged higher than this limit.
This rent ceiling would create higher demand and a smaller supply of apartments. This is because of law of demand and law of supply.
Because of shortage of apartments in the market, a black market will be created where the apartment owners will be able to charge higher rents through other charges.
B clothing, entertainment, and health care
