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3 years ago

Define an informal business

1 answer:

7 0

The informal sector refers to those workers who are self employed, or who work for those who are self employed. People who earn a living through self employment in most cases are not on payrolls, and thus are not taxed. Many informal workers do their businesses in unprotected and unsecured places.

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Average Rate of Return, Cash Payback Period, Net Present Value Method for a Service Company

kari74 [83]

Answer:

12.5%

4 years

NPV = $302,387

PV of cash flows = $1,552,387

Amount invested = $1,250,000

Explanation:

Average rate of return = net income / amount invested

Net income = cash flow - depreciation

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

1,250,000 / 8 = 156,250

Net income = $312,500 - 156,250 = $156250

(156250 / $1,250,000) x 100 = 12.50%

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period = Amount invested / cash flow

$1,250,000 / $312,500 = 4 years

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-1,250,000

Cash flow each year from year 1 to 8 = $312,500

I = 12%

NPV = $302,387

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

7 0

3 years ago

What is the majority of food made from

Mariana [72]

Answer:

Corn

Explanation:

7 0

3 years ago

Read 2 more answers

What is the rationale behind the ceiling when applying the lower-of-cost-or-market method to inventory?

Taya2010 [7]

Answer:

The correct answer is letter "D": Prevents overstatement of the value of obsolete or damaged inventories.

Explanation:

The lower-of-cost-or-market method values assets according to the lowest value possible choosing between the market value or the asset's historical cost. This accounting principle is useful to avoid exaggerating the value of obsolete or damaged assets the firm might have in stock.

5 0

3 years ago

If the demand for loanable funds shifts to the right, then the equilibrium interest rate a. and quantity of loanable funds rises

never [62]

If the demand for loanable funds shifts to the right, then the equilibrium interest rate and quantity of loanable funds rise.

Option: A

Explanation:

The availability of loanable funds is savings dependent. Lending is dependent on desire for loanable funds. The relationship between the savings supply and loan requirement decides the real interest rate and the amount is being loaned out.

The requirement for loanable funds reflects lenders' actions, as well as the amount of loans requested. The smaller the rate of interest, the less costly it is to lend. The balance of loanable funds on the market is done because the amount of loans lenders want is the same as the amount of savings that savers have. The interest rate varies to ensure that both are equivalent.

6 0

3 years ago

You oversee the $250 petty cash for your company. When an employee needs a special item that is not in inventory, you take money

sergey [27]

Answer:

Since this is the first time you have ever done this, is this a problem?

Of course this is a problem, you stole money. Stealing money is not right and it is a problem. If someone finds out, you will lose your job. legally, you could also be prosecuted, but the amount is very little. Another problem is that if you are able to go unpunished and no one finds out, this behavior will continue until you cannot hide it anymore. By then , the amount might be larger, not just a few dollars, and you will be in deep trouble.

If so, what steps should be taken to fix this problem? If not, why not?

Pay back the money you took. Simple as that. Sometimes, doing the correct thing is not difficult. Do not spend money on unnecessary things and pay the $30. Do it before this becomes a bad habit and you get into serious trouble that seriously damage your career. No company will hire someone fired for stealing money form their previous employer.

8 0

3 years ago