Which plan offers a tax-free education?

Abacus Company has an opportunity to invest in a depreciable asset that will yield a net cash inflow of $30,000 per year for fou

adell [148]

Answer:

Present Value of Investment Opportunity = $95,096

Explanation:

Net cash inflow = Cash inflow - cash outflow

Given that net cash inflow = $30,000 per month for 4 years

Rate of return = 10%

Present Value = $\frac{1}{(1+0.1)^{1} } X $30,000 + \frac{1}{(1+0.1)^{2} } X $30,000 + \frac{1}{(1+0.1)^{3} } X $30,000 + \frac{1}{(1+0.1)^{4} } X $30,000$

= $27,272.72 +$24,793.38 + $22,539.44 + $20,490.40

= $95,096 (rounded off to nearest dollar)

Present Value of Investment Opportunity = $95,096

5 0

3 years ago

A major advantage of the built-in or automatic stabilizers is that they.

julia-pushkina [17]

A major advantage of the built-in or automatic stabilizers is that they require no legislative action by Congress to be made effective.

<h3>What are automatic stablizers?</h3>

Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of the congress. An example of an automatic stablizer is taxes.

In an expansion, progressive tax increases the tax paid by citizens and in a contraction, tax paid is reduced and this increases disposable income.

Here is the complete question:

A major advantage of the built-in or automatic stabilizers is that they:

(a) simultaneously stabilize the economy and reduce the absolute size of the public debt.

(b) automatically produce surpluses during recessions and deficits during inflation.

(c) require no legislative action by Congress to be made effective.

(d) guarantee that the federal budget will be balanced over the course of the business cycle.

7 0

2 years ago

The following transactions were completed by the company.

dybincka [34]

Answer:

The impact of each transaction on individual items of the accounting equation:

A. The company completed consulting work for a client and immediately collected $6,200 cash earned.

Assets (Cash + $6,200) = Liabilities + Equity (Retained Earnings + $6,200)

B. The company completed commission work for a client and sent a bill for $4,700 to be received within 30 days.

Assets (Accounts Receivable + $4,700) = Liabilities + Equity (Retained Earnings + $4,700)

C. The company paid an assistant $1,750 cash as wages for the period.

Assets (Cash -$1,750) = Liabilities + Equity (Retained Earnings -$1,750)

D. The company collected $2,350 cash as a partial payment for the amount owed by the client in transaction b.

Assets (Cash +$2,350 and Accounts Receivable -$2,350) = Liabilities + Equity

E. The company paid $840 cash for this period's cleaning services.

Assets (Cash -$840) = Liabilities + Equity (Retained Earnings -$840)

Explanation:

The accounting equation is that assets are always equal to liabilities and equity before and after every business transaction. It is an important principle of accounting and the fulcrum of the double-entry system of accounting. It establishes the two sides to every transaction. It can be used to show the impact of daily business transactions on the assets, liabilities, and stockholders' equity.

7 0

3 years ago

hyperlink is a feature that A. calculates data in the cell B. connect text in a document to an outside source. C. saves a worksh

lisabon 2012 [21]

B connects text in a document to an outside source.

8 0

3 years ago

Read 2 more answers

What is the amount of money you still owe to their credit card company called?

evablogger [386]

Debit or credit? bAnk account

8 0

3 years ago