Isadora, a finance manager, is budgeting for the company's new line of production equipment. this equipment, which will be used for 20 years or more, is handled out of a(n) <u>capital </u>budget.
When evaluating the profitability of a business opportunity or asset, such as when entering a new market or purchasing new machinery, capital budgeting uses a number of formulas.
The capital budgeting procedure used to decide strategically whether to accept or reject a suggested investment project.
Investors may view a business owner's decision to make a long-term investment without capital budgeting as reckless. You can better comprehend a project's possible risks and rewards by using the capital budgeting analysis.
When pursuing a new investment project, a capital budget can also help with securing additional financing from banks or investors.
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Answer:
Option D, T Bonds and Eurodollars
, is the right answer.
Explanation:
Option D is correct because the future contract or interest rate future is the instruments that pay or offer the interest. However, the contract is an agreement on which buyer and seller are agreed for the future delivery of any interest that the asset bears. However, this contract gives the offer to the buyer and seller to lock the price of the asset that bears the interest in a future date. Moreover, this instrument is not a market traded instrument, these are the instrument used for a cash settlement. Thus, the same can be seen with option D. thus it is correct.
Answer:
Marginal tax rate = 34%
Average tax rate = 22.25%
Explanation:
The marginal tax rate is the rate of tax income earners incur on each additional dollar of income. As the marginal tax rate increases, the taxpayer ends up with less money per dollar earned than he or she had retained on previously earned dollars.
DATA
Income level = 100,000
Corporation Tax rates
0-50,000 = 15%
50,000 - 75,000 = 25%
75,000 - 100,000 = 34%
Marginal tax rate = 34%
Solution
Income tax owed = (15% x 50000)+(25% x 25000)+(34%*25000)
Income tax owed = 22,250
Average tax rate = 22,250/100000
Average tax rate = 22.25%
