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sergeinik [125]
3 years ago
15

Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, bu

t there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent, an additional $5 billion between 15 and 20 percent, and so on. If the real interest rate is 15 percent in this economy, the aggregate amount of investment will be
Business
1 answer:
bazaltina [42]3 years ago
8 0

Answer:

$10 billion

Explanation:

The aggregate amount of investment = the $5 billion that yield a 20-25% rate of return + the $5 billion that yield a 15-20% rate of return.

Both amounts are included because their rates of return are higher than the current interest rate in the economy (15%).

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- identify changes and trends as a source of new enterprise ideas
Elena-2011 [213]

Changes and trends are sources of new enterprise ideas. An example can be found in the advent of technology. The advent of internet-enabled devices has led to the growth of internet service providers. The use of headphones, Bluetooth devices, and other accessories has been borne because of new technologies that were not available some fifty years ago.

Changes in trends can lead to the birth of new businesses. Changes in weather condition that pose the risk of skin damage has led to the popularization of sunblocks.

Internet-enabled devices have also led to the introduction of enterprises that deal with gadgets accesories.

These examples show that changes and trends are sources of new enterprise ideas.

Learn more about entrepreneurship here:

brainly.com/question/13628349

7 0
2 years ago
A company's liquidity refers to its: ability to collect accounts receivable. ability to sell inventory efficiently. ability to g
algol13
A company's liquidity refers to its <span>ability to pay currently maturing debts.

Liquidity refers to the companies availability of assets that they can turn into cash or cash readily on hand. Maturity refers to a debt that needs to be paid by a certain, fixed date. 
</span>
6 0
3 years ago
Choose the correct answer. a.The cost of a CPA review course is deductible by a bookkeeper on his Schedule C. b.Expenses require
Snowcat [4.5K]

Answer:

d.Expenses for travel as a form of education are not deductible.

Explanation:

Expenses in the nature of travel, are not allowed while the travel might be for the purpose of education.

This is because it is not in the nature of direct expense.

As the expense for the purpose of business which are important for the business to pursue in a more positive manner is preferable and essential for the business.

As extra education and knowledge provide excellence to perform the task for which knowledge is acquired.

6 0
3 years ago
A company's income statement showed the following: net income, $134,000; depreciation expense, $40,000; and gain on sale of plan
Dvinal [7]

Answer:

the net cash provided by operating activities is $168,600

Explanation:

Cash flow from operating activities

net income,                                                     $134,000

adjust for non-cash items

add depreciation expense,                            $40,000

less gain on sale of plant assets,                    $14,000

adjust for changes in working capital

decrease in accounts receivable                    $11,400

increase in merchandise inventory              ($28,000)

increase in  prepaid expenses                       ($8,200)

increase in accounts payable                          $5,400

net cash provided by operating activities    $168,600                                                                        

4 0
3 years ago
Consider a palletizer at a bottling plant that has a fi rst cost of $150,000, operating and maintenance costs of $17,500 per yea
pshichka [43]

Answer:

Annual equivalent cost of the investment = $30,603.43 per annum

Explanation:

<em>Equivalent Annual cost is the Present Value of the total cost over the investment period divided by the appropriate annuity factor.</em>

<em>Step 1 </em>

<em>PV of cash flows</em>

PV of first cost =  150,000

<em>PV of annual maintenance cost of $17,500</em>

= 17,500× (1-(1+0.08)^(-30))/0.08

= 197,011.21

<em>PV of salvage value</em>

$25,000 × (1+0.08)^(-30)

= 2,484.43

<em>PV of net total cost </em>

= 197,011.21  +150,000 - 2,484.43

=  344,526.78

Step 2

<em>Determine the annuity factor for 30 years at 8%</em>

(1-(1+0.08)^(-30))/0.08

=11.2577

Step 3

<em>Equivalent annual cost</em>

= 344,526.78 / 11.2577

<em> =$30,603.43</em>

Annual equivalent cost of the investment = $30,603.43 per annum

6 0
3 years ago
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