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3 years ago

The method that allocates an equal amount of depreciation to each year of an asset’s service life is:

Business

1 answer:

kvasek [131]3 years ago

6 0

Answer: Straight line method of depreciation

Explanation: Under the straight line method of depreciation the asset is expensed over its useful life. In this method, depreciation or amortization is calculated by dividing the difference of initial cost and salvage value of the asset from its useful number of years.

This method is not commonly used for assets having longer term period but still some business entities use it as it is easy to calculate.

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You deposit $1,500 in a bank where you have a savings account. The bank

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Interest rate risk

Interest rate risk is the risk that arises for fixed-rate investments from fluctuating interest rates. How much interest rate risk a fixed-rate investment has depends on how sensitive its price is to interest rate changes in the market.

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3 years ago

Chloe makes $500 per week and spends all her income on books and tea. Books cost $25 each, and Chloe buys 16 each week. Tea cost

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2 years ago

Which best describes what happens to the amount of a good or service that is supplied to consumers? The amount of a good or serv

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The amount of a service cannot change. But the quality of a service can change positively or negatively

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3 years ago

Read 2 more answers

Firm A has 11 equally risky capital budgeting projects, each costing $29.608 million and each having an expected rate of return

Vanyuwa [196]

Answer:

How much capital should Firm A raise and invest?

$296.08 million should be raised and invested in projects.

Explanation:

WACC = 8% when A's retained earnings breakeven point = $296.08 million

Expected rate of return = 8.25%

WACC is less than expected rate of return.

Therefore, WACC is less than expected rate of return, which is beneficial, since cost of capital is less than expected rate of return.

therefore, $296.08 million should be raised.

If the firm A raises, more than $296.08 million, WACC would be increasing to 8.5%, this is greater than the expected rate of return i.e. 8.25%.

Hence raising amount more than $296.08 million will not be beneficial.

Hence it is clear that amount which should be raised and invested =$296.08 million.

Investment required in one project=$29.608 million.

Number of projects which can be started =$296.08/$29.608 =10 projects

All are equally risky therefore it does not matter which project should be left.

Hence, $296.08 million should be raised and invested in projects.

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2 years ago

THE PURSUIT OF HAPPYNESS

Mashutka [201]

Chris what’s a good role model for his kid even though they were homeless for a while he would put on a happy face and try to like turn it into something fun for his kid when they had to sleep in the bathroom at the train station he made it seem like the time traveled back and they had to find a cave which was fun for his kid he never give up on anything and when he found out the job that he really was pushing for didn’t pay he still went after it even though there was a huge chance that he wouldn’t even get the job that could pain and he worked even when he wasn’t getting a income which paid off to him getting the job he dreamed of He always had a uplifting personality that had a mindset of never giving up and behaviors that everything was all right even though he was in some tough spots he always thought about others I made the decisions best for him and mostly his son and always followed his dreams it was a huge role model. go watch the movie it’s actually good. sorry if that doesn’t make sense i tried.

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3 years ago