if you want to be able to compare different investments , which piece of information is the most helpful

Munster Company reports the following net cash in its statement of cash flows: net inflow from operating activities: $200; net o

Murrr4er [49]

Answer:

$170

Explanation:

Given the following information about Munster company:

Net inflow from operating ACTIVITIES = $200

Net outflow from investing ACTIVITIES = $300

Net outflow from financing ACTIVITIES = $50

Ending balance in cash = $20

BEGINNING BALANCE :

Outflows + ending balance - inflow

(Outflow from investing ACTIVITIES + outflow from financing ACTIVITIES + ending balance in cash) - inflow from operating activities

($300 + $50 + $20) - $200

$370 - $200

= $170

3 0

3 years ago

Cindy has been working for 8 years, and she’s built up a huge emergency fund -- $45,000, which would be 6 months of her salary.

baherus [9]

Answer with Explanation:

Following are some types of account investments that are better for emergency funds and the return on these investment varies depending upon the risk born by the investors:

Current Account Investments
Commodity Investments
Mutual Funds

If the inflation rate is below the return paid on the current account then it could be a better investment option as the money doesn't loose its value over time.

If the inflation rate is higher than the return paid on the current account then it is better to invest in commodities like gold, petroleum products, etc, that are often termed as speculative investments.

If the investor is risk seeking person, then it is better to invest in mutual funds as the return on such investments is higher because of the higher risk that the investor bears.

6 0

3 years ago

Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream

NeTakaya

Answer:

d. Charities

Explanation:

From the question, we are informed about the Supposed chicken farm which uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted due to the minerals in the waste matter. The local office of a nonprofit environmental organization successfully lobbies state regulators to stop the farm's pollution. In this case, the types of private solutions to the externality of pollution that has occurred is charity. Private solutions to externalities can varies from charities, business mergers as well as moral codes, all working at self interest of the relevant parties. according to Coase theorem, at low transaction cost two parties can reach efficient outcome after bargaining when externality are present. Charity can be regarded as generosity as well as helpfulness towards those that are less privilege or that are needy and cannot raise their voice.

7 0

2 years ago

A company is considering the purchase of new equipment for $57,000. The projected annual net cash flows are $23,400. The machine

lina2011 [118]

Answer:

Net Present Value = $3,304.069

Explanation:

To determine whether or not the investment was right, we will need to determine the net present value of the investment (NPV).

The NPV is the difference between the present value PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.

NPV of an investment(NPV)

NPV = PV of Cash inflows - PV of cash outflow

The cash inflow is an annuity.

PV of annuity= A× 1 -(1+r)^(-n)/r

A- Annual cash flow ,- 23,400 r - discount rate - 8%, number of years- 3

Present Value of cash inflow =23,400 × (1- (1.08)^(-3)/0.08 = 60,304.06

Initial cost = 57,000

Net Present Value = 60,304.06 - 57,000 = 3,304.069

Net Present Value = $3,304.069

Kindly note that a discount rate of 8% was used as it is the opportunity cost of capital for the investment.

4 0

3 years ago

f interest rate parity (IRP) exists, then triangular arbitrage will not be possible. A. true. B. false.

Levart [38]

Answer:

A. True

Explanation:

Arbitrage refers to a situation wherein a gain is made owing to price discrepancy or unevenness in two markets. The rule for arbitrage is to buy from the markets where price is less and sell in the markets where price is higher.

Triangular arbitrage occurs wherein 3 different currencies are involved and the exchange rates are not uniform i.e a discrepancy exists and interest rate parity does not hold true.

Interest rate parity refers to the concept wherein the disparity between two currency exchange rates is adjusted by the respective interest rates of the two countries. When interest rate parity exists, no arbitrage is possible as markets are fairly priced.

3 0

3 years ago