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aev [14]
1 year ago
12

If the united states government lowers the income taxes on the wealthiest americans, while decreasing welfare payments to the po

orest americans, the result will likely be in efficiency and in equality in the united states.
Business
1 answer:
DanielleElmas [232]1 year ago
3 0

If the united states government lowers the income taxes on the wealthiest americans, while decreasing welfare payments to the poorest americans, the result will likely be <u>increase</u><u> in</u>efficiency and in <u>inequality</u> in the united states

<h3>What is equality?</h3>

Equality can be defined as the way in which wealth or income are distributed equally or when their is equal wealth distribution  in a society.

If the united state of America intend to reduce the income taxes of the richest people and reducing the poor people welfare payment the outcome of this action is that it will lead to inefficiency while increase equality or  reducing inequality.

Therefore the result will likely be <u>increase </u>efficiency and in <u>equality</u> in the united states

Learn more about Equality here: brainly.com/question/1296408

#SPJ1

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You can buy property today for $3 million and sell it in 5 years for $4 million. (You earn no rental income on the property.) (L
kolbaska11 [484]

Answer:

a) Present Value of sales = $2,722,332.78

b) Property is not attractive. NPV$ (277,667.21)

c) Property is attractive. NPV-$520,874.79

Explanation:

The present value of the property

PV = S×  (1+r)^(-n)

S- Sales value

r- interest rate -8%

n- number of years

PV - present value

PV = 4,000,000× 1.08^(-5) = $2,722,332.78

b.  Is the property investment attractive to you?

We calculated the PV of the investment as follows

NPV = PV of sales value - initial cost

= 2,722,332.78 - 3,000,000=$ (277,667.21)

The property investment is not attractive because it will produce a loss in capital i.e negative NPV

C

To determine we will calculate the NPV again with considering the additional rental income

PV of annual rent = 200,000 ×  (1-1.08^(-5))/0.08= 798,542.00

NPV = 798,542.00  + 277,667.2119  - 3,000,000 =520,874.79

The property is attractive as it produces positive NPV

8 0
4 years ago
As a component of real estate value, the principle of substitution states that
k0ka [10]

Answer:

a. If two similar properties are for sale, a buyer will purchase the cheaper of the two.

Explanation:

The principle of substitution justifies the idea that the maximum value of a property will be set by the selling price of an equally valuable and desirable substitute property. In this case of property sale, if an area has two similar houses and one is being sold for $912,000 and the other is priced at $105,000, buyers will most likely go for the cheaper one. There is no reason to pay more money if they will be getting a similar property at low cost.

3 0
3 years ago
Mills Corporation acquired as an investment $225 million of 8% bonds, dated July 1, on July 1, 2021. Company management is holdi
Sholpan [36]

Answer:

Please see solution below.

Explanation:

1.

July 1, 2021

Dr Investment in bonds $225,000,000

Dr Premium on investment in bonds $25,000,000

Cr Cash $250,000,000

December 31, 2021

Dr Cash $18,000,000

Cr Interest revenue $15,000,000

Cr Premium on investments in bonds

$3,000,000

2.

Investment in bonds. $225,000,000

Premium on investment in bonds $22,000,000

3.

January 2, 2022

Dr. Cash $266,000,000

Cr Investment in bonds $225,000,000

Cr Premium on investment in bonds $22,000,000

Cr Gain on sale of investments $19,000,000

Workings:

Effective interest rate on first coupon received = [ $225,000,000 × 8%] - [ $250,000,000 × 6%]

= $18,000,000 - $15,000,000

= $3,000,000

Premium on investment in bonds = $25,000,000 - $3,000,000

= $22,000,000

8 0
3 years ago
If Lorenzo stands up at a concert he can see the performance better. He therefore concludes if everyone stood up, everyone could
Lemur [1.5K]

Answer:

The correct answer is letter "B": The statement presents the fallacy of composition.

Explanation:

The Fallacy of composition refers to a fallacy by which an individual believes that something is true just because part of the whole is true. Typically, this type of belief leads to mistaken conclusions because what might be right for one person does not necessarily is right for others.

6 0
3 years ago
_ are loans to a conpany or government for a set amount of time they Earn interest and are considered a low- risk invest
Arisa [49]

Answer:

bonds

Explanation:

7 0
3 years ago
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