Answer:
$200,000
Explanation:
We can define before tax cash flow (BTCF) as the amount of money gotten by an investment after receiving all of the revenues and payment of all bills, but without removing any other noncash items or depreciation, and before any calculation of income tax consequences is been done.
To calculate the Before-tax cash flow if there are no capital improvement expenditures or reversion items this period, simply calculate it by doing this
= PBTCF – DS
= $1,000,000 - $800,000
= $2,00,000.
Answer:
When interest rates change, there are real-world effects on the ways that consumers and businesses can access credit to make necessary purchases and plan their finances. It even affects some life insurance policies. This article explores how consumers will pay more for the capital required to make purchases and why businesses will face higher costs tied to expanding their operations and funding payrolls when the Fed changes the interest rate. However, the preceding entities are not the only ones that suffer due to higher costs, as this article explains.
Explanation:
Answer:
Commits the fed to set a particular money supply so that it hits the announced target
Explanation:
The target rate and money supply need to be alligned for the FED to achieve its goals.
