Answer:
$119,666
Explanation:
The benefit of remodelling can be calculated using the net present value.
The net present value is the present value of after tax cash flows minus the cost of an investment.
The net present value can be calculated using a financial calculator.
Cash flow for year 0 = $-2.8 million
Cash flow each year from year one to year five = $820,000
I = 12.5%
NPV = $119,666
The benefit of the renovation exceeds its cost so the renovation should be carried out.
I hope my answer helps you.
The amount generated from the investment with simple interest is calculated through the equation,
F = P x (1 + in)
where F is the future amount, P is the present worth, i is the decimal equivalent of the given interest and n is the number of interest period.
From this item it can be identified that,
P = $10,500
i = 0.06
n = 4
Substituting the known values,
F = ($10,500) x (1 + (0.06)(4))
<em> F = $13020</em>
Therefore, after four years, the amount of money that Alex will have is $13,020.
She should sell one of the stocks that she's held for over two years because long term gains receive preferential tax treatment
For the point of taxation, short term capital gains are treated as ordinary income , where as long term capital gains have preferential tax rates of 0%,15% or 20%, which depends upon the income level. Also effective tax rates on the long term capital gain is lesser than the short term capital gain.
With the top incomes paying about half the taxes on capital income as earned income, this preferential rate is one of the most expensive in the tax law and is regarded as a tax expenditure.
A capital gain is profit from the sale of an asset, like a business, stock, piece of art, or parcel of land.
Learn more about Tax here
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Answer:
The correct answer is option d.
Explanation:
Fiscal policy is a tool to affect economic activities and GDP through changes in government spending and tax revenue. Contractionary fiscal policy is used to reduce economic activities. It is adopted in case of inflationary pressure.
Contractionary fiscal policy may involve a reduction in government spending which will eventually reduce aggregate demand. Or the government could increase the tax rates. This will cause the disposable income of the consumers to reduce.
As the purchasing power decreases with the decline in disposable income, consumer spending will get reduced as well. This will further cause the aggregate demand to decline.
The government can use either of them or both at the same time.
<span>This invisible barrier is called the glass ceiling. There are multiple factors that enable such a thing, including (but not limited to) prejudices against women in the work place, lack of recruitment of women to certain types of jobs that are historically performed by men (i.e. science, engineering, etc), and lack of mentoring on the job.</span>
