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3 years ago

When looking for capital, bankers and other lenders will usually feel most comfortable investing in a/an

1 answer:

7 0

Assuming that '4' mean business,

the answer is a. Existing business with a proven record

Therefore, the investors could expect profit without having to take any unnecessary risk.

It is a lot safer compared to investing to a new business that could either go really well or really bad.

You might be interested in

P & G Auto Parts sells parts to AAA Car Repair during 2018. P&G offers rebates of 2% on purchases up to $60,000 and 3% o

nirvana33 [79]

Answer:

c. credit to Sales Revenue for $72,380.

Explanation:

Since AAA Car Repair's total purchases exceed $200,000 for the year, they are eligible for the 3% rebate on purchases above $60,000. Only the fraction of the purchase over $60,000 should get the 3% rebate, the first $60,000 get the 2% rate.

Therefore, the total sales amount recorded by P & G Auto Parts by selling $74,000 of parts to AAA is:

$S=(1-0.02)*\$60 + (1-0.03)*(\$74-\$60)\\S=\$72.38$

There should be a credit to Sales Revenue for $72,380.

5 0

3 years ago

A stock you own earned: $200, $500, $100, and $700 over the last four years. What was the mean annual gain in value over the fou

Sphinxa [80]

Answer:

$375

Explanation:

A stock you own earned: $200, $500, $100, and $700 over the last four years.

We need to find the annual gain in value over the four years. We know that,

Mean = sum of observations/total no. of observations

Put all the values,

$M=\dfrac{200+500+100+700}{4}\\\\M=\$ 375$

So, the required mean annual gain is equal to $375.

6 0

3 years ago

Suppose a new off-campus university apartment complex could rent its rooms on the open market for $900 a month. If, instead,

asambeis [7]

Answer:

a shortage would arise since quantity demanded would exceed the quantity supplied

Explanation:

The law of demand states an inverse relationship between price of a good and it's demand.

In the given case, per month rental for rooms has significantly reduced for students. This would result into an immediate increase in demand for the rooms. Now since, the rooms available are limited in number, a shortage would arise.

Owing to such a shortage, a possibility would arise wherein students who do not require such rooms may avail such rooms at $500 and subsequently let out the rooms to outsiders at anything below $900 thereby earning a profit.

3 0

3 years ago

You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation

ladessa [460]

Answer:

14.48%

Explanation:

The ARR is the quotient between the average income of a project over his investment cost.

The income will consider depreication and taxes.

We are given with the net income so, we should assueme are already included.

Frist step, calculate average net income.

$ 1,864,300,

+ $ 1,917 ,600

+ $ 1,886,000

+ $ 1,339,500

$ 7,007,400 Total return

Now we divide by 4 because there is a total of 4 years

$ 7,007,400 / 4 = $ 1,751,850 Average income

Now we calculate the ARR

average net income/ investment

1,751,850 / 12,100,000 = 0.144780992 = 14.48%

4 0

3 years ago

The shape of China's production possibilities frontier (PPF) should reflect the fact that as China produces more smartphones and

ArbitrLikvidat [17]

Answer:

Remain same

Explanation:

In this situation, China makes tablets and smartphones only. The equipment used to manufacture these two products is nearly the same, the same collection of tools is equally useful in manufacturing both smartphones and tablets. So there is the constant opportunity cost of both commodities.

Resources are similarly appropriate for the manufacturing of two varied goods at a constant opportunity cost.

Therefore, the opportunity costs for additional smartphone remains the same.

8 0

3 years ago