Based on the amounts that you are offered and their present values, the offer you should pick is Birr 10,000 in 12 years.
<h3>Which offer should you pick?</h3>
You should pick the offer with the highest present value.
Offer 1 present value:
= Birr 1,000
Offer 2 present value:
= 10,000 / (1 + 11%)²
= Birr 2,858
Offer 3 present value:
= 25,000 / (1 + 11%)³
= Birr 1,840
In conclusion, option 2 has the highest present value and so should be picked.
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The answer that best fits the question is that 'when a shot will give a clean kill' because a firearm's killing range can be known or considered to be more effective if it has the capacity of providing a clean kill with only using a one shot and does not require for a second or more.
Answer:
E)a,b,and c
Explanation:
A balance sheet is among the three main financial statements prepared by a business at the end of a period. It displays the assets of a company on one side and liabilities and equity on the other. The preparation of the balance sheet follows the accounting equation of assets equal to liabilities plus equity.
The balance sheet shows the net worth of a company by showing the total value of the firm's assets and how the assets have been financed. It indicates the current value of assets and tracts changes from period to another. The balance sheet will also indicate current liabilities and compares them to the previous period.
If you look at the information in the question, you'll notice that the return is less than the cost of borrowing (loan interest rate) (ATIRR). This indicates that there is negative leverage and that the property cannot utilise it.
Positive leverage would be created in the first year if the property was purchased with expected returns equivalent to leverage.
Financial leverage is the process of using borrowed money (debt) to buy assets in the expectation that the income from the new asset or capital gain would outweigh the cost of borrowing. The leverage is summed up in this idea. By using debt (loan money), or leverage, we mean to increase the profits on an investment or project.
Leverage allows investors to increase their market buying power.
Leverage is a tool used by businesses to finance their assets. Rather than issuing stock to raise money, businesses can use debt to finance operations in an effort to boost shareholder value.
The most popular financial leverage ratios to determine how hazardous a company's position is are debt-to-assets and debt-to-equity.
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Having a debit card will be more advantageous that having a prepaid card because:
- Debit cards have lower fees.
- Debit cards don't have to be loaded to be used.
<h3>Which is better between prepaid and debit cards?</h3>
Prepaid cards are generally better for those that do not have bank accounts or do not want to link their spending to their bank accounts on they have less advantages in general.
They often have higher fees than debit cards which sometimes have little to no fees. And because prepaid cards are not connected to your account, they will need to be loaded each time as opposed to the convenience offered by debit cards.
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