Answer:
Cash Inflow of $191,400
Explanation:
There are three types of activities in the cash flow statement which are described below:
1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.
These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income
2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.
In the given case, the sale proceed of equipment is consider in the investing activity i.e $191,400
Answer:
APY is when interest is added to an account that is earning the money so I belive that is the answer
Answer:
Medium of Exchange
Explanation:
The main function that distinguishes money from other assets is that everybody accept the money as a medium of exchange, either for our job or to buy things that we are interested.
Always through history the main function of money was to be a medium of exchange because at the begining money didn't exist so you needed to use different things, first salt, then precious metal and today money as we know.
Given:
tuition: 180,000 per year
period to save: 18 years
annual rate of return : 6%
FV = PV * (1+r)^t
180,000 = PV * (1 + 0.06)¹⁸
180,000 = PV * (1.06)¹⁸
PV = 180,000 / (1.06)¹⁸ = 180,000 / 2.854 = 63,069.38
Jack and Jill will have to invest 63,069.38 in the first year to have a total of 180,000 after 18 years.
Using Future Value Annuity formula:
FV of Annuity = P [{(1+r)^n - 1} / r]
180,000 = P [{(1.06)¹⁸ - 1} / 0.06]
180,000 = P (30.906)
P = 180,000 / 30.906
P = 5,824.11
Jack and Jill will have to deposit 5,824.11 every end of the year for the total to reach 180,000 after 18 years.
Answer:
Sell the put option. The put option is better and advantageous .
Explanation:
The call option is trading far below the strike price and poses risk. The price may not go up to $1.25 and hence not advisable. The put option is better as we stand to make a profit margin ($1.15 / Euro) if it sells the put at he strike price immediately. Given that the difference is high, it is unlikely that the price will move against us and we shall exercise the option as soon as the margin starts reducing.
