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seraphim [82]
3 years ago
9

Your broker called earlier today and offered you the opportunity to invest in a security. As a friend, she suggested that you co

mpare the current, or present value, cost of the security and the discounted value of its expected future cash flows before deciding whether or not to invest. The decision rule that should be used to decide whether or not to invest should be:
Business
1 answer:
Simora [160]3 years ago
3 0

Answer:

Everything else being equal, you should invest if the discounted value of the security's expected future cash flows is greater than or equal to the current cost of the security.

Explanation:

You would use the capital budgeting technique known as net present value (NPV) . In order for a project or investment to be accepted, the sum of the present values of future cash inflows generated by the project should be greater than the initial amount invested or the initial cost. If the PV of the future cashflows is lower than the initial cost of capital, the investment would be rejected. On the other hand, if they are equal, the investor would be indifferent between accepting or rejecting the investment.

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Answer:

All the answers are attached below. Thanks.

Explanation:

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A certain politician has a brilliant idea. he will increase his popularity and assure reelection by giving away cash to everybod
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A 2014 survey of 1,500 top managers, showed that only approximately _____% of companies achieved breakthrough innovation.
marusya05 [52]

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c

Explanation:

8 0
2 years ago
Read 2 more answers
On December​1, Mountain and Meadow Tree Service prepaid $6,600 for six​ months' rent. Give the adjusting entry to record rent ex
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Answer:

Mountain and Meadow Tree services prepaid rent $6,600 on December 1 for 6 months rent.

Note for asset and expense accounts when they increase you debit and when they reduce you credit.

The first entry

On December 1 : Debit Prepaid Rent account for $6,600

Narration: Prepaid rent for 6 months

Balance: $6,600

Since the rent is for 6 months, monthly payment will be= 6,600/6= $1,100

On December 31 post the following adjusting entries

December 31 : Debit Rent Expense $1,100

Narration: Rent for December

Balance: $1,100

December 31 : Credit Prepaid Rent $1,100

Narration: Rent for December

Balance: $5,500

6 0
3 years ago
This is where labor and other factors of production are sold in the circular flow model of income in economic theory *it’s for e
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Answer:

Resource Market

Explanation:

A resource market is a market from where businesses purchase inputs that can be used for production.

Resource Market is a market where labor and other factors of production are sold in the circular flow model of income in economic theory.

In Resource Market, households are the sellers and firms are the buyers.

8 0
2 years ago
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