For most people, the most effective way to save is to deposit extra money into a savings account. Using budgets is great, but not a lot of people can create and adhere to them.
Answer:
e) Increase the required rate of return used to evaluate the project to reflect the higher risk of the project
Explanation:
As per the basic concept of investment, "higher the risk, higher the return".
Thus, an investor assumes a higher risk only in the scenario wherein the expected return would be commensurate with such risk. Investor would only invest in a risky asset when the return derived can compensate him for the excess risk assumed.
Required rate of return is an investors expectation of return from a project also referred to as the cost of capital.
So for the purpose of evaluating the project, the investor should use a higher required rate of return to signify higher risk which would reveal the true viability of the project.
Answer:
B. $450
Explanation:
Interest rate = 9% = 0.09
Account receivable = $20,000
Interest = 0.09 x 20,000
= $1,800
At December 31, Black should record interest revenue of
1,800 x (90/360)
= 1,800 x 0.25
= $450
The answer is $450
Answer:
The city's net investment in capital assets is $30,000
Explanation:
To calculate the city's net investment in capital assets we start with the total amount of capital assets:
Capital assets $800,000
minus accumulated depreciation ($120,000)
<u>minus outstanding bonds ($650,000) </u>
net capital assets $30,000
Answer:
96.3 days
Explanation:
Inventory turnover is calculated as;
= ( Average inventory / cost of goods sold ) × 365
Where,
Average inventory = (Beginning inventory + Ending inventory) / 2
Average inventory = ($208,000 + $188,000) / 2
Average inventory = $198,000
Therefore,
Inventory turnover = ($198,000 / $750,000) × 365
Inventory turnover = 96.3 days
The average number of days for Tinker to sell it's inventory during 2019 is closest to 96.3 days
