Using the internal rate of return method, a conventional investment project should be accepted if the internal rate of return is equal to or greater than the discount rate.
investment is dedicating an asset to achieve an increase in value over a period of time. Making an investment requires sacrificing your current assets such as time, money, and effort. In finance, the purpose of investment is to generate profit from the assets invested.
The definition an investment is an asset that is purchased or invested to build wealth and save money from hard-earned income or capital appreciation. The importance of investment is primarily to gain an additional source of income or to make a profit from the investment over a period of time.
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Answer:
a. Computer - fixed asset
b. Patent - intangible asset
c. Oil reserve - natural resource
d. Goodwill - intangible asset
e. U. S. Treasury note - none of these (N)
f. Land used for employee parking - fixed asset
g. Gold mine - natural resource
Explanation:
Intangible assets are the assets of a company that cannot be seen or they are not physical in nature. They are usually difficult to evaluate. They include:
- Goodwill
- Patent
- Trademarks
- copyrights
a fixed asset is a long term tangible piece of property or equipment that a company has and uses it to generate income. they include plant, property and equipment.
A natural resource is a substance that occurs in nature that can be used to generate economic profit.
Answer:
Break-even point= 7,900 new costumers
Explanation:
Giving the following information:
Assume that during a recent fiscal year, one outlet spent $1,659,000 on a promotional campaign for its website that offered two free months of service for new subscribers.
In addition, assume the following information: Number of months an average new customer stays with the service (including the two free months) 22 months Revenue per month per customer subscription $16 Variable cost per month per customer subscription $5.
Break-even point= fixed costs/ contribution margin
Fixed costs= 1,659,000
Contribution margin= (16*20)-(5*22)= 210
Break-even point= 1,659,000/210= 7,900 new costumers
Answer:
a. debit Notes Receivable for the face value of the note
Explanation:
The note will generate interest over time, but at the moment of receiving the note, <u>it hasn't accrued any interest,</u> so we have to only <u>record for the value of the note today.</u>
Also this note represent the right to claim cash from the person who sign the note, so <u>it is an asset for the company.</u>
Asset <u>increase from debit side</u>, so the Note Receivable will be debited.
Answer:
D) 10-year, zero coupon
Explanation:
The zero coupon bonds with longer maturity period are more sensitive to interest rate changes than coupon payments bonds with the same maturity date and zero coupon bonds with shorter maturity periods.