1) this is because the households that make 40 000 dollars a year or less, while not paying income taxes at all, pay payroll taxes.
2)What we see here is that the government collects more than it spent (0.2 billion) - we call this situation a budget surplus.
Answer:
B. $15,556
Explanation:
As given in the question
Face value of bond = $400,000
Carrying value of bond = $388,900
Discount from par value = $11,100
Coupon rate = 3%
Bond yielding rate = 4%
Interest revenue for the year = Carrying value of bond x Bond yielding rate
Interest revenue for the year = 388,900 x 4%
Interest revenue for the year = $15,556
The correct option is B. $15,556.
Answer:
$34,310.45
Explanation:
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
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-200,000
Cash flow in year 1 - 5 = 65,000
I = 12%
NPV = $34,310.45
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.
3. Press compute
They might not have the money to invest in a buisness
