Answer:
Payment of more interest in future and extension in the term of debt
Explanation:
Credit cards refer to plastic money.Such cards grant the holder the facility to withdraw and make payments greater than their balance of money in the account. Credit cards grant liquidity to the holder but at the same time, the holder is required to pay interest if the money drawn in excess is not paid back to the issuer within a stipulated time.
Minimum balance payment refers to that threshold limit of payment required which keeps the credit card and credit limit operational.
Paying a minimum balance eliminates late fee but interest will have to be paid on the balance remaining outstanding. So gradually, as one keeps paying only the minimum balance, the amount remaining unpaid would rise and thus, the interest to be paid on such outstanding amount shall rise too.
Also, with increasing outstanding dues, the debt term i.e the period by which the holder pays off the entire money due along with interest, will extend. So minimum balance payment may save funds initially, but has adverse long term implications.
Answer:
Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. ... Alternatively, in accounting, the margin of safety, or safety margin, refers to the difference between actual sales and break-even sales
<span>A life or health insurance policy is owned by an employee, but the premiums are paid by the employer: o The premiums are treated as taxable income to the employee. o The employer may deduct the premiums against business income as long as the premiums are a reasonable business expense.</span>
Answer:
Modified Internal Rate of Return (MIRR) is higher than the discount rate. Therefore, this offer should be accepted.
Explanation:
Find the given attachment
Option (B) The net cash provided by investing activities is $99000 is correct.
<h3>What is net cash?</h3>
- On a company's financial statements, net cash is a sum that is given.
- It is determined by deducting a company's total cash from its total liabilities.
- When assessing the cash flows of a corporation, the net cash figure is frequently utilized.
<h3>What is cash flow?</h3>
- The net balance of money coming into and going out of a business at a particular period is referred to as cash flow.
- A firm constantly receives and expends cash.
- For instance, when a retailer buys merchandise, money leaves the company and goes to its suppliers.
<h3>Calculation of Net cash provided by investing activities:</h3>
Net cash provided by investing activities = land ($154000 cash inflow) - equipment purchase ($55000 cash outflow) = $99000
Hence, The net cash provided by investing activities is $99000.
Learn more about cash flow here:
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