What is your account balance after one year if you deposited 2000.00 earning 4% interest, compounded annually

What are the opportunities of an entrepreneur

slavikrds [6]

Definition: the skill and risk taking ability of the person who brings the other resources or factors of production together to produce a good or service e.g. the owner of a business. These people are called entrepreneurs

Opportunities of an entrepreneur:
• involves the sale or lease of any product, service, equipment that will enable the purchaser-licensee to begin a business.
• invest in (multiple) businesses
•quality content
• foreign markets
•crowdfunding

8 0

3 years ago

A company is considering investing in a new machine that requires a cash payment of $38,209 today. The machine will generate ann

navik [9.2K]

Answer:

The IRR is 10%.

Explanation:

a) Calculation of Internal Rate of Return (IRR):

We choose a discount rate, say 10% and use it to discount the cash flows to their present values. If the net present value (NPV) of all the cash flows equals zero, then that discount rate is accepted as the IRR.

b) Without 10% discount rate, the discount factors are for:

1st year = 1.1 (1 + discount rate) raised to power 1

2nd year = 1.21 (1 + discount rate) raised to power 2

3rd year = 1.331 (1 + discount rate) raised to power 3

c) These discount factors will divide the cash inflows for each year:

1st year, NPV = $15,364/1.1 = $13,967.27

2nd year, NPV = $15,364/1.21 = $12,697.52

3rd year, NPV = $15,364/1.331 = $11,543.20

Total NPV of inflows = $38,209 approximately

NPV of outflows -$38,209

NPV of inflows and outflows $0

So, the IRR is 10%.

IRR is a capital budgeting metric to measure profitability by using a discount rate which makes the net present value of all cash flows to become zero. To get a suitable rate, trial and error is involved, or one can make use of educated best guess.

8 0

3 years ago

The following events took place at a manufacturing company for the current year:

PilotLPTM [1.2K]

Answer: $25,369.50

Explanation:

GIVEN THE FOLLOWING :

Purchased direct material = $97,000

(2) Incurred labor costs as follows: (a) direct, $58,000 and (b) indirect, $15,600.

(3) Other manufacturing overhead was $109,000, excluding indirect labor.

(4) Transferred 80% of the materials to the manufacturing assembly line.

(5) Completed 65% of the Work-in-Process during the year.

(6) Sold 85% of the completed goods.

(7) There were no beginning inventories.

Ending work in process inventory is calculated by;

(Beginning inventory + 0.8(direct material purchased) + direct Labor + (indirect labor + other manufacturing overhead)) × percentage Work in process

($0 + (0.8×97000) + 58000 + (15600+109000))×0.65

=($0 + $77,600 + $58,000 + 124600)×0.65 = $169,130

Ending WIP Inventory = (100-85)% × $169,130

0.15 × $169,130 = $25,369.50

6 0

3 years ago

A u.s. consumer electronics company has to shut down because it cannot compete against foreign manufacturers. for the united sta

liq [111]

<span>This is an example of a cost of international trade. This can make it so that some domestic businesses lose their market share to foreign companies. This can create less profits for the company and made it so that it is difficult to create jobs.</span>

8 0

4 years ago

If a firm has $300,000 in cash flow from assets and $100,000 in cash flow to shareholders, what is the cash flow to creditors?

Oxana [17]

The cash flow from assets must equal the sum of the cash flow to creditors plus shareholders.

CF from Assets = CF to Shareholders plus CF to Creditors.

CF From assets = CF to Shareholders + CF to creditors.

CF from assets - CF to Shareholders = CF to creditors.

Thus, 300,000 - 100,000 = 200,000.

What is cash flow (CF)?

One of the areas on the cash flow statement that details how much money was made or spent on various investment-related activities during a given time period is the cash flow from investing activities (CFI) section. Purchases of tangible assets, investments in securities, and sales of assets or securities are all examples of investing activities.

A company's poor performance is frequently indicated by negative cash flow. Negative cash flow from investing activities, however, could be the result of significant sums of money being spent on things like R&D that are essential to the company's long-term success.

It's crucial to understand where an organization's investment activity fits into its financial statements before analyzing the various positive and negative cash flows from investing activities.

The balance sheet gives a summary of the assets, liabilities, and owner equity of a company as of a particular date. An overview of the company's earnings and outlays for a time period is given by the income statement. By displaying how much money is made or spent on operating, investing, and financing activities over a given time period, the cash flow statement fills the gap between the income statement and the balance sheet.

Thus, $200,000 is cash flow to creditors.

For more information on Cash Flow, refer to the given link:

brainly.com/question/28238360

#SPF4

8 0

2 years ago