Answer:
Betty's AGI $33,558
Explanation:
Betty's AGI:
Revenue from salon $88,560
Salaries paid to beauticians ($46,440)
Nail salon supplies ($23,620)
Salon's operating income $18,500
+
Interest income $14,665
+
Rental revenue from apartment building $35,180
Depreciation on apartment building ($14,400)
Real estate taxes paid on apartment building ($11,980)
Rental income $8,800
-
Alimony paid to her husband $7,100
-
Self-employment tax on salon income $1,307
=
Betty's AGI $33,558
Real estate taxes paid on Betty's house and charitable contributions are itemized deductions (below the line deductions).
Answer: Project X
Explanation:
The Payback period is the amount of time it would take for the cash inflows accruing from an investment to payoff the cost of the investment.
Project X has a constant cashflow of $24,000 for 3 years and a cost of $68,000 for the Payback period is;
= 68,000/24,000
= 2.83 years
Project Y has an uneven cash flow with a cost of $60,000. Payback is calculated as;
= Year before payback + Amount left to be paid/cashflow in year of payback
Year before payback = 4,000 + 26,000 + 26,000
= $56,000
This means that the third year is the year before payback.
60,000 - 56,000 = $4,000
Payback period = 3 + 4,000/20,000
= 3.2 years
Based on a Payback period of 3 years, only Project X should be chosen as it pays back in less than 3 years.
Answer:
C. Spreading risk by investing your money in a variety of funds and investment options.
Explanation:
To “diversify” a portfolio is to invest in a variety of assets as opposed to focusing on one type of asset. To diversify is to invest in different classes of assets to minimize the risks associated with investing.
Diversification minimizes risk by spreading it in the different classes of assets. Should returns from one class of assets be unfavorable, the losses incurred will be neutralized by positive returns from the other assets.
Answer:
4*0.07=energy use per day(x)
(x)*30=energy use in thirty days (y)
Therefore
X=$0.28
Y=$8.4
Explanation:
Answer:
Annual payment = $4,143.66 (Approx)
Explanation:
Given:
P = $1,000,000
r = 12% = 0.12
n = 30
Find:
Annual payment
Computation:
![Annual\ payment=P[\frac{(1+r)^n-1}{r} ] \\\\Annual\ payment=1,000,000[\frac{(1+0.12)^{30}-1}{0.12} ] \\\\ Annual\ payment=4143.66](https://tex.z-dn.net/?f=Annual%5C%20payment%3DP%5B%5Cfrac%7B%281%2Br%29%5En-1%7D%7Br%7D%20%5D%20%5C%5C%5C%5CAnnual%5C%20payment%3D1%2C000%2C000%5B%5Cfrac%7B%281%2B0.12%29%5E%7B30%7D-1%7D%7B0.12%7D%20%5D%20%5C%5C%5C%5C%20Annual%5C%20payment%3D4143.66)
Annual payment = $4,143.66 (Approx)
