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Taya2010 [7]
3 years ago
15

Why is understanding debt important?

Business
1 answer:
VikaD [51]3 years ago
7 0

Answer:

Understanding debt is critical to both financial literacy and financial security.

Explanation:

While most people have some debt, typically the importance of that debt is in direct proportion to the amount of debt they have. While some debt, such as a mortgage, business or automobile loan, can show stability and maturity, having more debt than you can pay can affect your health, relationships and your employment.

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Differential Analysis for a Lease or Buy Decision
il63 [147K]

Answer:

Lease Equipment $150,000

BUY EQUIPMENT$134,700

Differential Effects-$15,300

The company should choose BUY EQUIPMENT which is Alternative 2

Explanation:

Preparation of the differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment

Differential Analysis

Lease (Alt. 1) or Buy (Alt. 2) Equipment

March 15

Lease Equipment (Alternative 1); Buy Equipment

(Alternative 2); Differential Effects (Alternative 2)

Costs:

Purchase price $0 $120,000 $120,000

Freight and installation $0 $1,500 $1,500

Repair and maintenance (6 years) $0 $13,200.$13,200

($2,200*6=$13,200)

Lease (6 years) $150,000 $0 -$150,000

($25,000*6)

Total costs $150,000 $134,700 -$15,300

Based on the above calculation the company should choose BUY EQUIPMENT which is Alternative 2

4 0
3 years ago
Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered that the entire batch was finis
Law Incorporation [45]

Answer:

b) The $355,000 manufacturing cost of the tables already incurred.

Explanation:

The Business has already incurred this expense in making the coffee tables, this can not be done. Therefore, it does not make sense to consider this when considering whether to complete the

Tables, or sell them as they now are

All other points contribute either directly or indirectly to the decision that the company is about to take in this regard.

So, the correct answer is b

7 0
3 years ago
How do you make personal choices between satisfying your wants and your needs?
Juliette [100K]
You just need to find time for both.
4 0
2 years ago
Which of the following can increase your credit card’s APR?
k0ka [10]
One that could increase your credit cards APR is : C. Paying off the full balance
7 0
3 years ago
Herschel uses an app on his smartphone to keep track of his daily calories from meals. one day his calories from breakfast were
Blizzard [7]
<span>Let the number of calories from lunch be called L. As such, breakfast is then L + 128, and dinner is 2L - 400. We can then sum the three meals and equate it to the total caloric intake, the known value of 1932.
   So: 1932 = L + L + 128 + 2L - 400 = 4L - 272.
   Lunch = 551
 Breakfast = 551 + 128 = 679
 Dinner = 2*551 - 400 = 702</span>
3 0
3 years ago
Read 2 more answers
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