The amounts of money you can make on a college savings plan investment is dependent on

Which of the following investments has a higher present value, assuming the same (strictly positive) interest rate applies to bo

Sholpan [36]

Answer:

B. Investment Y has a higher present value.

Explanation:

The cash inflows are given in the question for Investment X and Investment Y

Plus we know that the cash inflows and the number of years has an indirect relation

That means if the cash flows are the same for year 1 and 2 and in year 3 and year 4 so year 1 and year 2 present value would be higher as compared with the last year present value

Since in the question Investment Y has higher cash inflows in starting year but in Investment X has higher cash inflows in last year that interprets Investment Y has a higher present value

8 0

3 years ago

A decrease in the interest rate due to an increase in the supply of loanable funds is referred to as the __________ effect.

lubasha [3.4K]

It's called a inflamtion, when basict when the economy gets really strong ,we have a hard time keeping up with demand and need to make the economy more weaker to balance things out

5 0

3 years ago

A stock's dividend is expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT? The stock

Llana [10]

Answer:

a. The stock's price one year from now is expected to be 5% above the current price.

Explanation:

Under gordon model:

$\frac{divends}{return-growth} = Intrinsic \: Value$

If we calculate the value of the stock for the year after that:

$\frac{divends x (1 + growth)}{return-growth} = Intrinsic \: Value$

to calculate the value of the increase we divide next year over current year.

$\frac{divends(1+growth)}{return-growth} \div \frac{divends}{return-growth}\\\\\frac{divends(1+growth)}{return-growth} \times\frac{return-growth}{divends}\\\\\frac{divends(1+growth)}{divends}= 1+ growth$

We have demostrate that next year stock should increase by 1 + growth so statement c is correct.

7 0

3 years ago

A 14-week construction activity requires a crane that rents for $1,000 per week and a crew of general laborers that costs $5,000

Helen [10]

Answer: C) $2,000 per week.

Explanation:

The slope of the project refers to the additional amount that it would cost to be able to finish the project faster than schedule.

In the question, the construction activity is for 14 weeks at a rate of $5,000 for the laborers per week. If you wanted to reduce this project duration to 10 weeks, you will have to spend an additional $2,000 more per week.

This $2,000 is therefore the slope of the activity.

3 0

2 years ago

Item3 1.42 points PrintCheck my work Check My Work button is not enabled 3 Item 3 Item 3 1.42 points Lakeview Company completed

larisa [96]

Answer:

Lakeview Company

Journal entries

A. Payroll

Debit Wages with $94,500

Credit Cash with $94,500

(Being December wages paid employees in Cash)

B. Rent collection Journal Dec 10.

Debit cash with $6,750

Credit Deferred Revenue with $6,750

(Being 30 days rent collected in advance. Rent expires Jan 10)

C. Rent Collected (adjusted Journal)

Debit Deferred Revenue Account with $4,500

Credit Rent Account with $4,500

(Being rent income applicable to this years records)

3.. Liability recognition

Debit Employee income taxes with $12,000

Debit FICA employee deductions with $9,000

Debit employees contribution to cancer research with $4,500

Credit Employee income taxes payable account with $12,000

Debit FICA employee deductions payable account with $9,000

Debit employees contribution to cancer research payables account with $4,500

(Being deduction from employee December wages)

Debit FICA employer deductions with $9,000

Debit State & Fed unemployment taxes (employer) account with $1,050

Credit FICA employer deductions payable account with $9,000

Credit State & Fed unemployment taxes (employer) payable account with $1,050

(Being employer contribution and taxes incidental to December Wage payment)

In the Balance sheet.

Current liabilities.

Deferred Revenue = $2,250

Employee income taxes payable account = $12,000

FICA employee deductions payable account = $9,000

employees contribution to cancer research payables account = $4,500

FICA employer deductions payable account = $9,000

State & Fed unemployment taxes (employer) payable account = $1,050

Total current liability = $37,800

8 0

3 years ago