Investing your emergency fund into a mutual fund is not a good idea because mutual funds are unpredictable, and you can lose your emergency fund.
<h3>What are mutual-funds?</h3>
Mutual funds are the investment pool, where money is invested by many people ad than in profit, all people gain the profit and in loss people lose their money.
Investors buy shares in the mutual funds and combined called as portfolio.
Thus, Investing your emergency fund into a mutual fund is not a good idea because mutual funds are unpredictable, and you can lose your emergency fund.
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Glance through the curriculum to discover how generally the chemical is used in the course of the year.
Chemical procurement is the manner of obtaining gadgets and/or ingredients for enterprise functions. This involves no longer simplest the act of hitting the “purchase” button, however, also includes the issues main up to that factor and the gear used to finish the procedure.
A chemical is any substance that has a described composition. In different phrases, a chemical is continually made from identical "stuff." some chemical substances arise in nature, such as water.
The definition of a chemical is a substance created by way of chemistry. An example of a chemical is a pesticide.
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Answer:
does not need a required rate to calculate
is the rate at which npv is zero
Explanation:
Internal rate of return is an example of capital budgeting method
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested.
Projects with the IRR greater than the discount rate should be accepted. It means that it is profitable.
Projects with more than one negative cash flow are unsuitable for calculating with IRR. This is because it can lead to multiple IRR, Thus, it not suitable for analysing all investment scenarios.
The net present value is the most preferred capital budgeting method
Other capital budgeting methods includes
1. profitability index = 1 + (NPV / Initial investment)
2. Accounting rate of return = Average net income / Average book value
3. Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
4. Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Answer:
D. Decrease by $700,000.
Explanation:
The computation of the effect on the total stockholder equity is as follows
Given that
Number of shares is 20,000
Per share $35 recorded at a cost
Own shares at par is $20
As we know that if we purchased our own stock so it would be called as a treasury stock and the same is to be deducted from the shareholder equity as it is a contra equity account that reduce the equity balance
Now the effect would be
= 20,000 shares × $35
= $700,000
Hence, it is decreased by $700,000