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3 years ago

What are some reasons that a business would borrow funds

Business

1 answer:

algol [13]3 years ago

5 0

Answer:

Start up costs have to be paid. Before a single sale can be made, there needs to be something to sell. ...

Working Capital is Needed to Keep Cash Flowing. ...

Use The Investment To Make More Than It Costs To Borrow. ...

Borrowing Money Reduces Personal Risk. ...

Insufficient Funds.

Explanation:

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What type of documents do you see in the given image? The given image shows .

NeTakaya

Answer: business report

Explanation:

6 0

2 years ago

BD Corporation has purchased new computers to modernize the office. The increased efficiency from the computers will lead to inc

Inessa [10]

Answer:

BD Corporation should not purchase the new computers

Explanation:

initial outlay year 0 = -$300,000

increased productivity per year = $75,000 for years 1-5

discount rate = 8%

NPV = -$300,000 + $75,000/1.08 + $75,000/1.08² + $75,000/1.08³ + $75,000/1.08⁴ + $75,000/1.08⁵ = -$300,000 + $69,444.44 + $64,300.41 + $59,537.42 + $55,127.24 + $51,043.74 = -$300,000 + 299,453.25 = -$546.75

since NPV is negative, then the project should be rejected

we can also use an annuity factor to determine the present value of this annuity, PV = $75,000 x 3.9927 = $299,452.50

NPV = -$300,000 + $299,452.50 = -$547.50

5 0

3 years ago

he most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $ 18,900 Current assets $

Pavel [41]

Answer:

9.69%

Explanation:

Given the following :

Net income = $4819

Total asset = $38,200

Taxable income = $6,100

Dividend payout ratio = 30% = 0.3

The internal growth rate is calculated thus ;

(Return on asset × Retention ratio)/[1-(Return on asset × Retention ratio)]

Return on asset = (Net income / total asset)

Return on asset = ($4,819 / $38,200)

Return on asset = 0.12615

Retention ratio = 1 - Dividend payout ratio

Retention ratio = 1 - 0.3 = 0.7

Hence internal growth rate :

(0.12615 × 0.7) / 1 - (0.12615 × 0.7)

0.088305 / 1 - 0.088305

0.088305 / 0.911695

= 0.0968580

= 0.0968580 × 100%

= 9.685%

= 9.69% ( 2 decimal places)

6 0

3 years ago

. Archie can claim total deductible medical expenses that exceed 7.5% of his adjusted gross income. a. True b. False

Thepotemich [5.8K]

The correct answer is; False, as of 2020.

Further Explanation:

In the previous tax years, 2017-2018, this statement would of been correct. Archie could of claimed his total deductible medical expenses that exceeded 7.5% of his AGI. However, the laws changed for 2019 and this is no longer the correct way to claim medical expenses.

For the 2019 taxes, a person can only deduct any expenses that amount to over 10% of the total AGI per person. The deduction can be figured by taking your AGI and multiplying this total by 10%. The deductions will also have to be itemized before claiming.

Learn more about medical deductibles at brainly.com/question/1845375

#LearnwithBrainly

3 0

3 years ago

Ann is a teacher who became interested in helping adults in some of the poorer neighborhoods learn how to read. She plans to sta

garik1379 [7]

Answer:

correct answer is nonprofit organization

Explanation:

The nonprofit organization primarily represents organizations based on scientific, educational, research and religious concerns.
The nonprofit organization represents voluntary and association type organizations that do not pay income tax.
In question, Ana is a professional teacher and she wants to help a poor student in her studies and open a center known as a non-profit organization.

so correct answer is nonprofit organization

5 0

3 years ago