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NNADVOKAT [17]
4 years ago
14

Parks Corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. The

investment would provide cash inflows of $2,000 per year for six years. The working capital would be released for use elsewhere when the project is completed.
If the company's discount rate is 10%, the investment's net present value is closest to (Ignore income taxes):

a) $1,290 b) $(1,290) c) $2,000 d) $4,350
Business
1 answer:
Lady_Fox [76]4 years ago
5 0
I think is the answer c
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Which of the statement(s) is correct? i. Corporations rarely pay tax on the interest income. ii. Higher tax bracket people tend
Doss [256]

Answer:

E. All the statements are correct

Explanation:

i. Corporations rarely pay tax on the interest income.

This statement is correct. Some companies do not even pay any income taxes.

ii. Higher tax bracket people tend to buy municipal bond because it is federal tax exempt.

Correct, people who have high incomes, and are subject to a high federal income tax rate often buy municipal bonds because these bonds are exempt from federal income tax.

iii. Short term capital gain and long-term capital gain are treated differently for individuals.

Correct. Short-term capital gains are those obtained from the sale of property that was owned for less than one year. This gains are often treated with the highest tax rate.

Long-term capital gains are those obtained from the sale of property that was owned for more than one year, and are treated with more favorable tax rates.

iv. The corporate tax rates in the U.S. is one of the lowest among the developed nations.

This statement is correct. The corporate tax rate in the U.S. is a nominal 21% (the effective rate can be as low as 0% for some companies). This is one of the lowest rates among developed nations, whose rates hover around 25 to 30% on average.

5 0
3 years ago
The business cycle affects output and employment in capital and durable goods industries more severely than in industries produc
Virty [35]

Answer:

During a recession business investment in new capital goods and consumer spending on new durable goods can be postponed

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The four phases of the business cycle are;

1. Peak

2.Recession

3. Trough

4. Expansion

The length of a complete cycle usually varies from 2-3 years to 15 years.

6 0
2 years ago
A company is struggling to finish the required accounting work for its financial year-end. The employees are unwilling to stay l
MissTica
That would be E job completion paying extra to stay and get the work done is job completion.
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3 years ago
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A CBA , used to justify the project is typically prepared in the analysis phase of the secsdlc, must be reviewed and verified prior to the development of the project plan.

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A project plan is a document that outlines each step needed to complete a project from A to B. It is sometimes portrayed as a Gantt chart. It acts as a roadmap by outlining the project phases, important project tasks, their start and end dates, interdependencies, and project milestones.

Learn more about project plan here

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