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3 years ago

What are some simlarities between saving and investing?

Business

1 answer:

uysha [10]3 years ago

7 0

Answer:

A similarities between saving and investing

1) Its about money.

2) Investing is similar to saving because you’re putting away money for the future. But you're trying to earn more money.

Explanation:

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The following information to perform the calculations below (using the indirect method).

Liono4ka [1.6K]

Answer: -$556,000

Explanation:

Based on the information given in the question, the the amount of cash used by investing activities would be calculated as:

Purchase of long-term assets -612,000

Add: Sale of long-term investment at cost 56,000

The amount of cash used by investing activities would now be:

= -$612,000 + $56,000

= -$556,000

7 0

3 years ago

A proposed project has an initial cost of $38,000 and cash inflows of $12,300, $24,200, and $16,100 for years 1 through 3, respe

In-s [12.5K]

Answer:

IRR is greater than required return by 17.38 - 16.8 % = 0.58 %

so project will accept

Explanation:

given data

initial cost = $38,000

cash inflows year 1 = $12,300

cash inflows year 2= $24,200

cash inflows year 3 = $16,100

rate of return = 16.8 %

solution

we consider here IRR is = x so

present value of inflows is equal to present value of outflows .............1

we can say that it as

initial cost = present value

3800 = $\frac{12300}{1*x} +\frac{24200}{(1*x)^2} +\frac{16100}{(1*x)^3}$

solve it we get

x = 17.38%

here IRR is greater than required return by 17.38 - 16.8 % = 0.58 %

so project will accept

4 0

3 years ago

Amount Number of units sold 11,000 Selling price per unit $ 16 Variable selling expense per unit $ 1 Variable administrative exp

german

Traditional income statement : Net operating income $47,000

Contribution income statement : Net operating income $25,000

Traditional Income Statement

Sales (11,000 x $16) $176,000

Cost of goods sold

(9,000 + 87,000 - 25,000) ($71,000)

Gross Margin 105,000

Selling and administrative expenses:

Selling expense

(11,000 x 1) + 22,000 $33,000

Administrative expense

(11,000 x 1) + 14,000 $25000

Net operating income $47,000

Contribution format income statement

Sales $176,000

Variable expenses:

Cost of goods sold 71,000

Selling expense 11,000

Administrative expense 11,000 ($93,000)

Contribution Margin $83,000

Fixed expenses:

Selling expense 33,000

Administrative expense 25,000 (58,000)

Net operating income $25,000

Learn more about preparation of income statement here : brainly.com/question/24498019

3 0

2 years ago

Loan Term - Interest Rate - Monthly Payment24 months - 2.5% - $342.08 36 months - 3% - $232.65 48 months - 4% - $180.63 60 month

a_sh-v [17]

Answer:

Option B 36 months

Explanation:

The reason is that it meets both the budget requirement which is it must be under $250 and must be the one that pays the principle and the interest amount as quickly as possible. So if Markel choses the option with monthly instalments made within 36 which is under $250 then it will also enable him to pay his liabilities as early as possible.

8 0

2 years ago

Jason is going to play golf this afternoon and has to choose between two different golf courses. The greens fees to play each ar

yuradex [85]

Answer:

Explanation:

the relevant total cost is 4 dollars

3 0

2 years ago