Answer:
Hurdle rate of return.
Explanation:
A hurdle rate can be regarded as minimum rate of return that is been required by an investor or manager
on a particular project or investment.
The hurdle rate gives the description of the appropriate compensation as regards level of risk present. There are
higher hurdle rates associated with riskier projects.
It should be noted that A minimum acceptable rate of return for an investment decision is called the Hurdle rate of return.
Answer:
Present
Explanation:
An outlay cost is a cost incurred at the time when we have to execute the strategy or purchasing an asset. It can be paid to the vendors for purchasing the goods like for inventory. So this cost should be recognized as an expense when they are incurred in order to earn the revenue in the current or present accounting period
Answer:
a. 7,000 years
b. 2,333 years
c. 875 years
Explanation:
Based on rule of 70, we can have the following formula to do the calculation:
Number of years to double = 70 ÷ Interest rate per year .................... (1)
We can now calculate as follows:
a. A savings account earning 1% interest per year.
Number of years to double = 70 ÷ 1% = 7,000 years
b. A U.S. Treasury bond mutual fund earning 3% interest per year.
Number of years to double = 70 ÷ 3% = 2,333 years
c. A stock market mutual fund earning 8% interest per year.
Number of years to double = 70 ÷ 8% = 875 years
Note:
It can be observed that the higher the interest rate, the lower the number of years it will take the investment to double.
Answer:
Income Tax is referred to as the amount of money an individual is required to report and remit to the tax agencies for earning revenues. Also, it is the federal government's share from the individual's earnings which would be used for their public works projects such as building railways and sewage treatment.
The following amounts are taxable and not.
a. Salary, $44,000 (Yes
)
b. Dividends received, $600 (Yes
)
c. Share of partnership income, $4,000 (Yes)
d. Partnership distribution in the current year, $1,000 (No)
e. Partnership distribution in the following year, $600 (No)
f. State lottery winnings of $2,000 (Yes)
