These sentence is right :
- The owner accepts full financial liability
- All profits go to the individual who owns the business.
In a sole proprietorships, only one person had the control over the business, therefore, all the profit and liabilities that had been earned by the business will go to that one person
The correct answer is net income.
Savings should be treated as another type of NET INCOME.
Net income is termed as the amount of earning which is remains after all the deductions have been made from the sales.
The amount of profit which is final.
The discounted payback period does account for the time value of money, and the payback period does not.
<h3>
What is discounted payback period?</h3>
A method of capital budgeting used for determining a project's profitability is known as discounted payback period. This will be done by recognizing the time value of money and by discounting cash flows of the future.
The payback period is the amount of time it takes for an asset's net cash flows to pay back the amount invested in it. It's a quick and easy technique to assess the risk of a given project.
The advantage of this method is utilized in selecting the projects as this method helps to determine the profitability of any project by identifying measures to reach the break-even point in any project.
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The total amount accrued, principal plus interest, with compound interest on a principal of $400.00 at a rate of 12% per year compounded 4 times per year over 8 years is $1,030.03.
<h3>What is
compound interest ?</h3>
Compound interest is the addition of interest to the principal sum of a loan or deposit, or interest on interest plus interest.
Compound interest is when you earn interest on both your savings and your interest earnings. Assume you invest $1,000 (your principal) and earn 5% (interest rate or earnings) once a year (the compounding frequency).
Compound interest works by adding accumulated interest to your principal (the amount you put into the savings account), which then begins earning interest. Essentially, your interest begins to earn its own interest.
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